Deutz, Tafe Motors ink pact to expand its business in India

CHENNAI: Deutz is adding another cornerstone to its dual strategy, which includes the development of alternative drive systems further and the expansion of the internal combustion engine business.

The cooperation with Indian agri group Tafe Motors and Tractors Limited announced on Tuesday allows Deutz to expand its business in India, tapping into one of the fastest growing markets worldwide. Tafe Motors is the subsidiary of Tafe - the third largest tractor manufacturer in the world.

Initially, Tafe Motors will manufacture for Deutz up to 30,000 engines in 2.2L (50-75 hp) and 2.9 L (75-100 hp) to augment and complement the wide range of engines made by the Group across emission standards. Tafe Motors will produce engines to suit newer applications in the Indian market as well as for Deutz’s requirement. The engines will be produced in Tafe Motors’ manufacturing facility at Alwar, Rajasthan.

Deutz will use the Indian manufacturing base to promote the remaining engines in neighbouring markets (esp APAC), benefiting from cost advantages in production and logistics.

“The strategic cooperation with Tafe Motors secures Deutz access and long-term prospects in growing markets with great potential for our smaller combustion engines,” explains Deutz CEO, Sebastian C Schulte. “It also enables us to continue producing at competitive costs in the future and makes us less dependent on the existing supplier landscape, which is becoming increasingly challenging due to the technological shift and geopolitics”.

Sandeep Sinha, CEO, Tafe Motors, said, “This strategic cooperation between Tafe Motors and Deutz 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 domestic and international markets.”