Deutz AG and TAFE Motors have jointly launched a Deutz engine production facility with capacity for producing 35,000 engines annually.

The German Deutz AG has entered a production collaboration with TAFE Motors to bring Deutz engine production to the Indian company's manufacturing plant in Rajasthan.

Under the licensing agreement, TAFE Motors will manufacture Deutz-licensed 2.2L and 2.9L engines for both domestic and international markets.

The production facility is set to have an annual production capacity of 35,000 engines and 50,000 sub-assemblies.

TAFE

TAFE Motors and Tractors Limited (TMTL) is a subsidiary of Tractors and Farm Equipment Limited (TAFE), one of the largest tractor manufacturers in India by volume.

TAFE chair and managing director, Mallika Srinivasan called production collaboration a "defining milestone in TAFE's growth journey".

She said: "TAFE and the Amalgamations Group together are one of India's largest engine manufacturing ecosystems, with a production capacity projected to expand from 400,000 to 550,000 engines annually by 2030.

"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," Srinivasan said.

TAFE's chief executive officer Sandeep Sinha added: "The TAFE-Deutz facility integrates high levels of automation across manufacturing, testing and logistics."

TAFE have said that the production facility will have a 40% women workforce, a sign that the company is attempting to advance its gender diversity goals.

Rajasthan facility

The new production facility was inaugurated at the existing manufacturing plant in Alwar, Rajasthan by Colonel Rajyavardhan Rathore, Minister of Industry and Commerce for the government of Rajasthan.

Rathore spoke about the partnership between TMTL and Deutz, and praised TAFE chair and managing director, Mallika Srinivasan "for her visionary leadership and contributions to nation-building" in bringing the facility to Rajasthan.

He said: "I appreciate the commitment of TAFE's workforce, supply chain partners, and next-generation leadership in driving innovation, skilling and empowering India's farmers through world-class technology and manufacturing excellence."

Agricultural machinery manufacturers have identified India as a key marketplace due to the large agricultural sector and numerous small/medium-sized farms.

In addition, the country boasts lower manufacturing costs through competitive labour costs, component sourcing and manufacturing costs.

India has also become a hub for the export of goods, leading to companies establishing manufacturing plants in the country that export worldwide.

Deutz AG

Founded in Cologne, Germany, in 1864, Deutz AG is the world's oldest engine company.

Deutz engines and systems can be found in a wide range of applications, such as construction equipment, agricultural machinery, material handling equipment (such as forklifts) and stationary equipment (such as generators).

Deutz's chief executive officer Dr. Sebastian Schulte spoke positively about the launch of the facility.

Schulte 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."