TAFE Motors and Tractors Ltd. said it had signed a pact with Germany-based internal combustion engine (ICE) maker Deutz AG to jointly manufacture Deutz range of engines in India.
Deutz signed a long-term cooperation with TAFE Motors, the subsidiary of the leading tractor maker TAFE Ltd., that allows the former to expand its business in India.
With the signing of this cooperation, Duetz is adding another cornerstone to its ‘Dual+’ strategy, which includes both the further development of alternative drive systems and the expansion of the ICE business, TAFE Motors said in a statement.
As the beginning of a long-term cooperation, 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’ facility at Alwar, TAFE Motors said.
Deutz will use the Indian manufacturing base to promote the remaining engines in neighbouring markets such as Asia Pacific Region benefitting 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,” said 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,” he said.
This strategic cooperation 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 CEO Sandeep Sinha.
Both parties are exploring opportunities to expand the cooperation to green drives.
