TAFE Motors, DEUTZ AG Ink Pact To Expand Internal Combustion Engine Business

TAFE Motors and Tractors Ltd., a subsidiary of TAFE Ltd., a leading manufacturer of tractors, has partnered with DEUTZ AG, a German manufacturer of internal combustion engines, to jointly produce the DEUTZ engine line in the country. TAFE (Tractors and Farm Equipment) Motors and Tractors Ltd is a subsidiary of world's third biggest tractor manufacturer and city based TAFE Ltd.

"DEUTZ inks cooperation with TAFE, allowing DEUTZ to expand its business in India. As the beginning of a long-term cooperation, TAFE Motors would manufacture up to 30,000 DEUTZ engines in 50-75 hp and 75-100 hp under license to augment and complement the wide range of engines made by the group across emission standards," a company statement here said on Tuesday.

In addition to meeting DEUTZ's needs, TAFE Motors and Tractors Ltd. would produce engines for newer Indian applications. The motors would be delivered at the manufacturing facility of TAFE Motors at Alwar, Rajasthan. The manufacturing plant presently creates diesel engines and gensets in the 5 to 125 kVA range that are showcased as Eicher Motors and TMTL Motors. DEUTZ would use the manufacturing base for abroad business sectors including Asia Pacific and neighbouring nations.

"The strategic cooperation with TAFE Motors secures DEUTZ access to growing markets with strong potential and long-term prospects," DEUTZ CEO Sebastian C Shulte said.

"It also enables us to continue producing at competitive costs in the future and make us less dependent on the existing supplier landscape, which is becoming increasingly challenging due to the technological shift and geopolitics," Shulte added.