Manufactured at TAFE’s Alwar plant, these engines will serve domestic and Asia-Pacific markets.
TAFE Motors and Tractors Ltd which is a subsidiary of TAFE Ltd has formed a joint venture with DEUTZ AG to manufacture DEUTZ engines in India. TAFE Motors will manufacture from 30,000 to 30000 DEUTZ engines per year, in the power range of 50-100hp to complement and expand its current lineup of engines. The deal also marks the German company’s expansion into the Indian market, mentioned in the statement.
TAFE Motors will produce engines to suit newer applications in the Indian market as well as for Deutz’s requirements. The engines will be produced in TAFE Motors’ manufacturing facility at Alwar, Rajasthan in India. The Alwar unit currently manufactures diesel engines and gensets in the 5 to 125 kVA range, which are marketed as Eicher Engines (up to 45 kVA) and TMTL Engines (62.5 kVA & above). Deutz will use the Indian manufacturing base to promote the remaining engines in neighbouring markets (Asia Pacific region in particular), benefitting from cost advantages in production and logistics.
“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.
DEUTZ would like to utilise TAFE Motors’ manufacturing capacity for the domestic as well as international markets in the Asia-Pacific region.
According to DEUTZ CEO Sebastian C Schulte, such a partnership is crucial for the company’s development since it opens new geography, allows for lower costs and minimises dependence on sensitive supply chains.
