TAFE Motors, DEUTZ AG ink pact; to expand internal combustion engine business
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TAFE Motors and Tractors Ltd, the subsidiary of leading tractor maker TAFE Ltd has inked a pact with Germany-based internal combustion engine manufacturer DEUTZ AG to jointly manufacture DEUTZ range of engines in the country. TAFE (Tractors and Farm Equipment) Motors and Tractors Ltd is a subsidiary of world's third largest tractor manufacturer and city based TAFE Ltd.

 

The engines would be produced at the manufacturing facility of TAFE Motors at Alwar, Rajasthan. The manufacturing facility currently produces diesel engines and gensets in the 5 to 125 kVA range that are marketed as Eicher Engines and TMTL Engines.

DEUTZ would utilise the manufacturing base for overseas markets including Asia Pacific Region and neighbouring countries.

 

"The strategic cooperation with TAFE Motors secures DEUTZ access to growing markets with strong potential and long-term prospects," DEUTZ CEO Sebastian C Shulte said. 

 

"It also enables us to continue producing at competitive costs in the future and make us less dependent on the existing supplier landscape, which is becoming increasingly challenging due to the technological shift and geopolitics," Shulte added.

The cooperation between the two companies gives DEUTZ an opportunity to expand its supplier base, besides ensuring more efficient and resilient production. The cooperation would also reduce the dependence on supply chains in geopolitically tense  ..