Picture Source: Companies’ official photo
TAFE Motors and Tractors Ltd, a subsidiary of the renowned tractor manufacturer TAFE (Tractors & Farm Equipment Ltd), has inked a significant agreement with the German company Deutz AG.
The partnership aims to jointly manufacture Deutz’s internal combustion engines for various applications, including tractors, industrial machinery, and generators.
Expansion into the Indian Market
The collaboration marks Deutz AG’s strategic entry into the burgeoning Indian market. Under the agreement, TAFE Motors will produce up to 30,000 Deutz engines in the 2.2L (50-75 hp) and 2.9L (75-100 hp) categories.
These engines will cater to diverse emission standards, complementing the extensive range of engines already produced by the Group.
Manufacturing in Rajasthan
The engines will be manufactured at TAFE Motors’ facility in Alwar, Rajasthan, which currently produces diesel engines and gensets in the 5 to 125 kVA range.
These products are marketed under the Eicher Engines (up to 45 kVA) and TMTL Engines (62.5 kVA & above) brands.
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 cooperation will also offer Deutz access to high-quality engines at competitive costs for new applications in Indian and relevant overseas markets,” he added.
Cost and Market Benefits
Deutz plans to leverage the Indian manufacturing base to promote its engines in neighboring markets, particularly in the Asia Pacific region. This move aims to capitalize on cost advantages in production and logistics.
“The strategic cooperation 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.
