TAFE Motors and Tractors Limited (TMTL), a wholly owned subsidiary of Tractors and Farm Equipment Limited (TAFE), on Monday inaugurated its new DEUTZ engine production facility at its existing manufacturing plant in Alwar, Rajasthan.This marks the first-ever production and manufacturing collaboration between TAFE Motors and DEUTZ AG, as per a statement by the company.Germany’s DEUTZ is one of the the world’s oldest engine company. Its solutions are used in a wide range of applications, including construction equipment and agricultural machinery.The new production facility was inaugurated by Rajasthan’s Industries Minister Colonel Rajyavardhan Singh.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.“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. The partnership 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,”Mallika Srinivasan, Chairman & Managing Director, TAFE, said.Lakshmi Venu, Vice Chairman, TAFE, said the TAFE Motors - Deutz production facility reflects the company’s commitment to and investments in, advanced manufacturing rigorous quality systems and continuous capability development. "With a 40 per cent women workforce, the TAFE-DEUTZ production facility continues to advance gender diversity goals,” she said.Published on July 20, 2026