Deutz in cooperation with TAFE

Company to manufacture engines under license in India

Days after announcing its acquisiton of U.S.-based gen-set manufacturer Blue Star Power Systems, Deutz said it has added another cornerstone to its Dual+ strategy, which includes the development of alternative drive systems and the expansion of the internal combustion engine business.

The cooperation with the Indian agricultural group TAFE Motors and Tractors Ltd. is expected to help the company to expand its business in India, tapping into what it said is one of the fastest growing markets worldwide. TAFE Motors is the subsidiary of TAFE, the third largest tractor manufacturer in the world.

In 2023, the Indian economy grew by around 7% and it is expected that India’s gross domestic product (GDP) will quadruple by 2050. The agricultural and construction sector will play a major role in achieving this strong growth.

India Deutz CEO Dr. Sebastian C. Schulte and Mallika Srinivasan, chairman and managing director of TAFE Motors, during the signing of the cooperation agreement. (Photo: Deutz AG)

As the beginning of a long-term cooperation, TAFE Motors will manufacture up to 30,000 Deutz engines in 2.2 L (rated 50 to 75 hp) and 2.9 L (75 to 100 hp) under license. The aim is to augment and complement the wide range of engines made by the group across emission standards. TAFE Motors will produce engines to suit growing demands of the Indian market as well as for Deutz’s requirements. The engines will be produced in TAFE Motors’ factory in Alwar, Rajasthan, India.

Deutz said it will use the Indian manufacturing base to market its engines in neighboring markets (especially Asia-Pacific), benefitting from advantages in production and logistics.

“The strategic cooperation with TAFE Motors secures Deutz access to growing markets with strong potential and long-term prospects,” said Deutz CEO Dr. 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.”

Speaking on behalf of TAFE Motors, Sandeep Sinha, CEO of TAFE Motors 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. This cooperation will also offer Deutz access to high-quality engines at best cost for new applications in Indian and relevant overseas markets.”

Deutz said both parties are exploring opportunities to expand the cooperation to green drives.

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