internal combustion engine: TAFE Motors, DEUTZ AG ink pact; to expand internal combustion engine business

TAFE Motors and Tractors Ltd, the subsidiary of leading tractor maker TAFE Ltd has inked a pact with Germany-based internal combustion engine manufacturer DEUTZ AG to jointly manufacture DEUTZ range of engines in the country. TAFE (Tractors and Farm Equipment) Motors and Tractors Ltd is a subsidiary of world’s third largest 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.

TAFE Motors and Tractors Ltd would produce engines to suit newer applications in the Indian market as well as for DEUTZ’s requirement.

The engines would be produced at the manufacturing facility of TAFE Motors at Alwar, Rajasthan. The manufacturing facility currently produces diesel engines and gensets in the 5 to 125 kVA range that are marketed as Eicher Engines and TMTL Engines.

DEUTZ would utilise the manufacturing base for overseas markets including Asia Pacific Region and neighbouring countries.

“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. The cooperation between the two companies gives DEUTZ an opportunity to expand its supplier base, besides ensuring more efficient and resilient production. The cooperation would also reduce the dependence on supply chains in geopolitically tense regions, the company said.

“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 TAFE Motors and Tractors Ltd CEO Sandeep Sinha.

“This cooperation will also offer DEUTZ access to high quality engines at best cost for new applications in Indian and relevant overseas markets,” Sinha added.