Deutz partners with TAFE Motors to expand Indian Market

Both parties are exploring opportunities to expand the cooperation to green drives.

Cologne, Germany- Deutz AG., is strengthening its Dual+ strategy by partnering with TAFE Motors and Tractors Limited., a subsidiary of India's TAFE the tractor manufacturer, to expand its business in India. This collaboration with India's economic growth, which saw a 6-7% increase in 2023, and it is expected that India’s gross domestic product (GDP) will quadruple by 2050., driven significantly by the agricultural and construction sectors.

As part of a long-term partnership, TAFE Motors will produce up to 30,000 DEUTZ engines (2.2L and 2.9L) under license, catering to both the Indian market and DEUTZ’s needs. These engines will be manufactured at TAFE Motors’ modern facility in Alwar, Rajasthan. DEUTZ aims to leverage this Indian base to market its engines in neighbouring APAC markets, benefiting from production and logistics advantages.

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

The cooperation allows DEUTZ to expand its supplier base, enhancing production efficiency and resilience. It reduces dependence on supply chains in geopolitically tense regions while maintaining cost benefits, particularly benefiting DEUTZ's German production sites.

Mr. 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”.