TAFE Motors and DEUTZ AG Launch New Engine Manufacturing Facility in Alwar, Rajasthan
TAFE Motors and Tractors Limited (TMTL), a wholly owned subsidiary of Tractors and Farm Equipment Limited (TAFE), has inaugurated a new DEUTZ engine production facility at its existing manufacturing plant in Alwar, Rajasthan. The facility marks the first manufacturing collaboration between TAFE and Germany's DEUTZ AG, one of the world's oldest engine manufacturers. The plant was inaugurated on July 20 by Rajasthan's Minister for Industries and Commerce, Colonel Rajyavardhan Singh Rathore.
Under the licensing agreement, TAFE Motors will manufacture DEUTZ-licensed 2.2-litre and 2.9-litre engines for both domestic and international markets, catering to the agriculture, construction, logistics and industrial equipment sectors. The new facility has an annual production capacity of 35,000 fully assembled engines and 50,000 sub-assembly components, and incorporates Industry 4.0-enabled manufacturing with integrated manufacturing execution systems and digital connectivity across the production process.
The project builds on a cooperation agreement TAFE Motors signed with DEUTZ AG in 2024, under which DEUTZ engines are manufactured at TAFE's Alwar facility for both the Indian market and DEUTZ's requirements in the Asia-Pacific region. TAFE said the collaboration will support its plan to raise total annual engine production capacity from 400,000 units to 550,000 units by 2030, combining Indian manufacturing scale with German engineering.
Company officials said the venture is expected to serve as a growth catalyst for allied engineering industries in Rajasthan, reinforcing the state's position as a manufacturing hub. The Alwar facility also maintains a 40% women workforce as part of the company's broader diversity goals.