TAFE Motors and DEUTZ Inaugurate New Engine Manufacturing Plant in Rajasthan

Key Highlights

• TAFE Motors inaugurated a new engine manufacturing plant in Alwar, Rajasthan.

• First manufacturing joint venture between TAFE Motors and DEUTZ AG.

• Plant will produce DEUTZ-licensed 2.2L and 2.9L internal combustion engines.

• Annual capacity includes 35,000 assembled engines and 50,000 sub-assembly components.

• TAFE aims to increase annual engine production from 4 lakh to 5.5 lakh units by 2030.

TAFE Motors and Tractors Limited has officially started operations at its new engine manufacturing assembly line in Alwar, Rajasthan. The new facility has been established in collaboration with German engine manufacturer DEUTZ AG, marking the first manufacturing joint venture between the two companies.

The plant was inaugurated by Rajasthan's Minister for Industry and Commerce, Rajyavardhan Singh Rathore, during a formal ceremony held at the Alwar facility.

DEUTZ-Licensed Engines for India and Global Markets

Under a regional licensing agreement, the new plant will manufacture DEUTZ-licensed 2.2-litre and 2.9-litre internal combustion engines. These engines will serve both Indian and international markets.

The engines are designed for use across multiple industries, including agriculture, industrial equipment, and logistics, helping meet the growing demand for advanced and globally compliant diesel engine solutions.

Annual Capacity of 35,000 Engines

The Alwar manufacturing facility has been built with an annual production capacity of 35,000 fully assembled engines. In addition, it can manufacture up to 50,000 engine sub-assembly components every year.

The new production line is expected to strengthen TAFE Motors manufacturing capabilities while supporting customers in both domestic and export markets.

TAFE Plans to Increase Engine Production by 2030

As part of its long-term growth strategy, TAFE and the Amalgamations Group plan to significantly expand their overall engine manufacturing capacity.

The companies aim to increase annual engine production from the current 4,00,000 units to 5,50,000 units by 2030. This expansion is expected to strengthen TAFE's position in the engine manufacturing sector while improving technology transfer, manufacturing expertise, and supply of high-quality engine solutions for customers worldwide.

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CMV360 Says

The inauguration of TAFE Motors' new engine manufacturing plant in Alwar marks an important milestone in its partnership with DEUTZ AG. With the production of advanced 2.2-litre and 2.9-litre DEUTZ-licensed engines, the facility will cater to agriculture, industrial, and logistics applications in India and overseas. Combined with ambitious plans to increase annual engine production to 5.5 lakh units by 2030, the project highlights TAFE's commitment to expanding manufacturing capabilities, adopting global technology, and strengthening India's role as a major engine manufacturing hub.