DEUTZ, a leading German internal combustion engines manufacturer, has signed a deal with India’s TAFE Motors and Tractors Limited to produce 30,000 engines. This partnership is part of DEUTZ’s ‘Dual+’ strategy, which focuses on alternative drive systems and internal combustion engines.
The cooperation will help DEUTZ expand in India, one of the world’s fastest-growing markets. TAFE Motors, a subsidiary of TAFE, the world’s third-largest tractor manufacturer, will make the engines at its Alwar facility in Rajasthan.
TAFE Motors will produce engines in the 2.2L (50-75 hp) and 2.9L (75-100 hp) ranges for DEUTZ. These engines will be used in both the Indian market and neighboring regions, benefiting from cost advantages in production and logistics.
DEUTZ CEO Dr. Sebastian C. Schulte said, “This strategic cooperation secures DEUTZ access to growing markets and allows us to produce at competitive costs.” In 2023, India’s economy grew by 6 to 7 percent, and its GDP is expected to quadruple by 2050, with the agricultural and construction sectors playing key roles.
Sandeep Sinha, CEO of TAFE Motors, stated that the partnership will be mutually beneficial, offering access to shared resources and technologies to produce engines for both domestic and international markets. This will provide DEUTZ with high-quality engines at the best cost for new applications in India and relevant overseas markets.
DEUTZ plans to use the Indian manufacturing base to promote its engines in neighboring markets, especially in the APAC region, benefiting from lower production and logistics costs.