TAFE Motors and Tractors Ltd, a wholly owned subsidiary of leading tractor maker TAFE (Tractors & Farm Equipment Ltd) has signed an agreement with Germany-based Deutz AG, a manufacturer of internal combustion engines, to jointly manufacture the latter’s engines for tractor and industrial and generator applications.

The deal also marks the German company’s expansion into the Indian market.

As per the co-operation, TAFE Motors will manufacture for Deutz up to 30,000 engines in 2.2L (50-75 hp) and 2.9 L (75-100 hp) under a license to augment and complement the wide range of engines made by the Group across emission standards, according to a statement.

TAFE Motors will produce engines to suit newer applications in the Indian market as well as for Deutz’s requirements. The engines will be produced in TAFE Motors’ manufacturing facility at Alwar, Rajasthan in India.

The Alwar unit currently manufactures diesel engines and gensets in the 5 to 125 kVA range, which are marketed as Eicher Engines (up to 45 kVA) and TMTL Engines (62.5 kVA & above).

Strategic partnership

“This strategic cooperation between TAFE Motors and Deutz will be mutually beneficial, as it will offer access to shared resources and technologies to produce engines that complement TAFE Motors’ and the Group’s existing range to meet the demand for both domestic and international markets,” said Sandeep Sinha, CEO of TAFE Motors.

“This co-operation will also offer Deutz access to high-quality engines at competitive costs for new applications in Indian and relevant overseas markets, he added.

Deutz will use the Indian manufacturing base to promote the remaining engines in neighbouring markets (Asia Pacific region in particular), benefitting from cost advantages in production and logistics. 

“The strategic co-operation with TAFE Motors secures DEUTZ access and long-term prospects in growing markets with great potential for our smaller combustion engines. It also enables us to continue producing at competitive costs in the future and makes us less dependent on the existing supplier landscape, which is becoming increasingly challenging due to the technological shift and geopolitics,” said Sebastian C. Schulte, CEO of Deutz.

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