TAFE-Deutz opens new engine plant

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TAFE Motors and Tractors Limited (TMTL), a subsidiary of Tractors and Farm Equipment Limited (TAFE) in India, inaugurated the new DEUTZ engine production facility at its manufacturing plant in Alwar, Rajasthan. It marks the first production and manufacturing collaboration between TAFE Motors and DEUTZ AG.

Under the licensing agreement, TAFE Motors will manufacture DEUTZ-licensed 2.2L and 2.9L engines for both domestic and international markets, with an annual production capacity of 35,000 engines and 50,000 sub-assemblies. The production facility incorporates end-to-end Industry 4.0-enabled manufacturing with complete manufacturing execution system integration and digital connectivity across the production process.

The new facility was inaugurated by Minister for Industry & Commerce Colonel Rajyavardhan Singh Rathore, Government of Rajasthan.

Speaking on the occasion, Mallika Srinivasan, Chairman & Managing Director, TAFE, said, “The inauguration of the new plant marks a defining milestone in TAFE’s growth journey. TAFE and the Amalgamations Group, together are one of India’s largest engine manufacturing ecosystems, with a production capacity projected to expand from 4,00,000 to 5,50,000 engines annually by 2030.”

“Our partnership with DEUTZ, one of Europe’s premier engine manufacturers and a pioneer in diesel engine technology brings together the precision of German engineering and the strength of India’s manufacturing capabilities. This venture will also serve as a growth catalyst for the allied engineering industries in Rajasthan, further strengthening the state’s position as a manufacturing hub. We extend our gratitude to the Government of Rajasthan for the continued support in enabling this landmark initiative.”

Dr Lakshmi Venu, Vice Chairman, TAFE, said ” India’s manufacturing sector is entering a new phase. The TAFE Motors – Deutz production facility reflects our commitment to and investments in, advanced manufacturing systems and continuous capability development that will enable us to respond to an evolving India and International market demand. With a 40% women workforce, the TAFE-DEUTZ production facility continues to advance gender diversity goals.

Sandeep Sinha, Chief Executive Officer, TAFE, said ” The TAFE-Deutz facility integrates high levels of automation across manufacturing, testing and logistics, along with vision systems, robotics and cobots for critical assembly functions and reaffirms our ability to manufacture world-class products at scale. We are creating a world-class platform that will deliver exceptional value to customers in India and across international markets. Further, the facility also incorporates a state-of-the art engine testing and an advanced quality laboratory with complete digital traceability to ensure global quality standards.”

Dr. Sebastian Schulte, Chief Executive Officer, Deutz said, “The inauguration of the new DEUTZ engine assembly line in Alwar marks an important milestone in our cooperation with TAFE. It reflects the commitment and strong collaboration of both teams in turning our shared vision into industrial reality.”

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