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TAFE Motors and Deutz AG Forge Alliance to Expand ICE Business
TAFE Motors and Tractors Ltd. (TMTL) has entered into a strategic partnership with German internal combustion engine (ICE) manufacturer Deutz AG to jointly produce Deutz's engine range in India, the companies announced.
The agreement allows Deutz to leverage TAFE Motors' (a subsidiary of TAFE Ltd.) manufacturing capabilities to boost its presence in the Indian market. This long-term collaboration aligns with Deutz's ‘Dual+’ strategy, which focuses on advancing alternative drive systems while expanding the ICE business.
According to TAFE Motors, the cooperation involves the manufacturing of up to 30,000 engines annually in two specifications: 2.2L engines (50-75 hp) and 2.9L engines (75-100 hp). These engines will support a variety of applications in the Indian market and supplement Deutz’s global engine offerings, meeting diverse emission standards.
Production will take place at TAFE Motors' facility in Alwar, where engines will be tailored for both local market needs and Deutz’s broader requirements. Deutz plans to utilize this Indian base to distribute engines to neighboring markets in the Asia-Pacific region, capitalizing on cost benefits in manufacturing 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”.
Sandeep Sinha, CEO of TAFE Motors, highlighted the mutual benefits of the partnership. “This strategic cooperation will provide access to shared resources and technologies, enhancing our ability to produce engines that complement TAFE Motors' and the Group’s existing range. It will meet the growing demand for engines in both domestic and international markets”, he said.
The alliance with Deutz signifies a pivotal step for TAFE Motors, positioning the company as a key player in the ICE market while contributing to Deutz’s strategic objectives of cost efficiency and market expansion. The collaboration is set to strengthen the capabilities of both companies in delivering advanced engine technologies and supporting the evolving needs of the global market.
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