DEUTZ inks cooperation agreement with TAFE Motors

DEUTZ has inked a cooperation agreement with TAFE Motors, to further the development of alternative drive systems and expand its internal combustion engine business. 

The cooperation with Indian agricultural group TAFE Motors and Tractors Limited announced today, 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.

As the beginning of a long-term cooperation, TAFE Motors will manufacture up to 30,000 engines in 2.2L (50-75 hp) and 2.9 L (75-100 hp) for DEUTZ to augment the wide range of engines made by the Group across emission standards.

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

Dr. Sebastian C. Schulte, DEUTZ CEO said that the strategic cooperation with TAFE Moors will help the company access long term prospects in growing markets, with "greater potential for our smaller combustion engines." 

"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 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 to Deutz the access to high quality engines at best cost for new applications in Indian and relevant overseas markets."