TAFE Motors and Tractors has signed an agreement with Germany-based Deutz AG, a manufacturer of internal combustion engines, to jointly manufacture engines for tractor and industrial and generator applications in India. With this, the German company has expanded into the the country.

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 licence for complementing the wide range of engines made by the Group, across emission standards. It will offer Deutz access to high-quality engines at competitive costs for new applications in India and overseas markets. 

The engines will be produced in TAFE Motors’ manufacturing facility at Alwar in Rajasthan. The unit currently manufactures diesel engines and gensets in the five to 125 kVA range, marketed as Eicher Engines (up to 45 kVA) and TMTL Engines (62.5 kVA & above).

Under the strategic cooperation between TAFE Motors, subsidiary of leading tractor maker Tractors & Farm Equipment (TAFE) and Deutz, access to shared resources and technologies to produce engines will be provided, and will enable production at competitive costs in the future.

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