TAFE Motors, Deutz launch advanced engine manufacturing facility in Alwar

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 manufacturing plant in Alwar, Rajasthan, marking the first manufacturing collaboration between TAFE Motors and Germany-based DEUTZ AG.
The facility was inaugurated by Colonel Rajyavardhan Singh Rathore, Rajasthan Minister for Industry and Commerce, Youth Affairs and Sports, Information Technology and Communications, Sainik Welfare, and Skill Development and Entrepreneurship.
Under a licensing agreement, TAFE Motors will manufacture DEUTZ-licensed 2.2-litre and 2.9-litre engines for domestic and international markets. The plant has an annual production capacity of 35,000 engines and 50,000 sub-assemblies and features Industry 4.0-enabled manufacturing with integrated digital production systems.
Rajyavardhan Singh Rathore said the investment reinforces Rajasthan’s emergence as a leading manufacturing destination and supports the vision of “Made in Rajasthan for the World” while contributing to Aatmanirbhar Bharat.
TAFE Chairman and Managing Director Mallika Srinivasan said the facility marks a major milestone in the company’s growth, adding that TAFE and the Amalgamations Group aim to expand their combined annual engine manufacturing capacity from four lakh to 5.5 lakh units by 2030.
She said the partnership blends German engineering with India’s manufacturing strength and will boost Rajasthan’s engineering ecosystem.
Dr. Lakshmi Venu, Vice Chairman of TAFE, said the facility reflects the company’s commitment to advanced manufacturing and quality, while also promoting gender diversity with a 40 per cent women workforce.
TAFE Chief Executive Officer Sandeep Sinha said the plant integrates advanced automation, robotics, digital quality systems and engine testing to deliver world-class products for Indian and global markets. Dr. Sebastian Schulte, Chief Executive Officer of DEUTZ, described the project as a significant milestone in the partnership between the two companies.