TAFE Motors Inks Long-Term Agreement With Germany's DEUTZ
TAFE Motors will produce engines to suit newer applications in the Indian market as well as for Deutz’s requirement.
TAFE Motors and Tractors Ltd., a subsidiary of TAFE, has inked a long-term cooperation agreement with DEUTZ of Germany. With 160 years of heritage, DEUTZ is one of the largest makers of innovative drive systems in the world.
Chennai-based, unlisted TAFE is the flagship company of the Amalgamation Group. To begin with, TAFE Motors will manufacture for Deutz up to 30,000 engines in 2.2 L (50–75 hp) and 2.9 L (75–100 hp) to augment and complement the wide range of engines made by the group across emission standards.
DEUTZ-CEO Dr. Sebastian C. Schulte and Mallika Srinivasan, Chairman and Managing Director of TAFE Motors, signing the cooperation agreement. (Source: DEUTZ AG)
TAFE Motors will produce engines to suit newer applications in the Indian market as well as for Deutz’s requirements. The engines will be produced at its facility in Alwar, Rajasthan. DEUTZ will use the Indian manufacturing base to promote the remaining engines in neighbouring markets, especially in the APAC region.
“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 Dr. Sebastian C. Schulte, CEO of DEUTZ, in a statement.
The tie-up allows DEUTZ to broaden its supply base in the emerging geopolitical context. It also opens up opportunities for the German company in a growing market with great potential for smaller combustion engines.
Sinha, CEO of TAFE Motors, said that the collaboration would offer access to shared resources and technologies to produce engines that complement the needs of each other.
The two are also exploring opportunities to expand their cooperation to green drives.
TAFE Motors and Tractors has three manufacturing divisions: the tractors division, the engines division and the transmissions division. It was established in 2005, when TAFE acquired the tractors, engines and gears divisions of Eicher Motors Ltd.
The tractor division at Mandideep, near Bhopal, manufactures tractors under the Eicher brand. It is, perhaps, the lone manufacturer in the world of both air-cooled and water-cooled tractors.
Its engine division manufactures specially designed engines for stationary and automotive applications and has a strong presence in the retail, agro, telecom and industrial segments.
Based at Alwar, Rajasthan, the unit manufactures diesel engines and gensets in the 5 to 125 kVA range that are marketed as Eicher Engines (up to 45 kVA) and TMTL Engines (62.5 kVA and above). The transmissions division, which houses an advanced manufacturing facility in Parwanoo, Himachal Pradesh, is capable of producing a range of gears, shafts and housings for captive consumption and OEMs.
KT Jagannathan is a senior financial journalist based in Chennai. He has been in business journalism for over three decades, covering corporate developments and critical industry verticals. He is the co-founder of www.carnaticdarbar.com, a news website for Carnatic music, a niche art form.
