TAFE Motors inaugurates new DEUTZ engine production facility in Alwar

Alwar, July 20, 2026: TAFE Motors and Tractors Limited (TMTL), a wholly owned subsidiary of Tractors and Farm Equipment Limited (TAFE), today inaugurated its new DEUTZ engine production facility at its existing manufacturing plant in Alwar, Rajasthan, marking the first-ever production and manufacturing collaboration between TAFE Motors and DEUTZ AG.
 
Founded in 1864 in Cologne, Germany, where it is still based today, DEUTZ is the world’s oldest engine company. In recent years DEUTZ has evolved from a manufacturer of conventional engines into a system provider for innovative and sustainable mobility and energy solutions. DEUTZ solutions are used in a wide range of applications, including construction equipment, agricultural machinery, material handling equipment such as forklift trucks and lifting platforms, stationary equipment such as generator sets (gensets) and defence applications.

The new production facility was inaugurated by Colonel Rajyavardhan Singh Rathore, Hon’ble Minister for Industry & Commerce, Youth Affairs & Sports, IT & Communications, Sainik Welfare, and Skill Development & Entrepreneurship, Government of Rajasthan. 

Under the licensing agreement, TAFE Motors will manufacture DEUTZ-licensed 2.2L and 2.9L engines for both domestic and international markets, with an annual production capacity of 35,000 engines and 50,000 sub-assemblies. The production facility incorporates end-to-end Industry 4.0-enabled manufacturing with complete Manufacturing execution system integration and digital connectivity across the production process.

Rajasthan’s Cabinet Minister, Rajyavardhan Singh Rathore, while addressing the gathering lauded TAFE's investment in the state. He said “TAFE’s new production facility at Alwar is a strong endorsement of Rajasthan's emergence as a preferred manufacturing destination and exemplifies the vision of 'Made in Rajasthan for the World' while contributing to the national goal of an Aatmanirbhar Bharat. I reaffirm the state's commitment to fostering a business-friendly ecosystem through progressive policies and ease of doing business. I also commend TAFE’s Chairman & Managing Director, Mallika Srinivasan for her visionary leadership and contributions to nation-building, and 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”

Speaking on the occasion, Mallika Srinivasan, Chairman & Managing Director, TAFE, said, "Today marks a defining milestone in TAFE's growth journey. TAFE and the Amalgamations Group, together are one of India’s largest engine manufacturing ecosystems, with a production capacity projected to expand from 4,00,000 to 5,50,000 engines annually by 2030.”

“Our partnership with DEUTZ, one of Europe's premier engine manufacturers and a pioneer in diesel engine technology brings together the precision of German engineering and the strength of India's manufacturing capabilities. 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. We extend our gratitude to the Government of Rajasthan for the continued support in enabling this landmark initiative."

Dr Lakshmi Venu, Vice Chairman, TAFE, said " India's manufacturing sector is entering a new phase, driven by technology, operational excellence and globally benchmarked capabilities. The TAFE Motors - Deutz production facility reflects our commitment to and investments in, advanced manufacturing rigorous quality systems and continuous capability development that will enable us to respond to an evolving India and International market demand. With a 40% women workforce, the TAFE-DEUTZ production facility continues to advance gender diversity goals.

Sandeep Sinha, Chief Executive Officer, TAFE, said " The TAFE-Deutz facility integrates high levels of automation across manufacturing, testing and logistics, along with vision systems, robotics and cobots for critical assembly functions and reaffirms our ability to manufacture world-class products at scale. We are creating a world-class platform that will deliver exceptional value to customers in India and across international markets. Further, the facility also incorporates a state-of-the art engine testing and an advanced quality laboratory with complete digital traceability to ensure global quality standards."

Dr. Sebastian Schulte, Chief Executive Officer, Deutz 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.”
 
The new production facility is a milestone event that brings together the forging of new international partnerships, technology capabilities and advanced manufacturing towards TAFE Motors vision of being a world class engine manufacturer.