TAFE and DEUTZ Launch Engine Manufacturing Plant in Alwar, Rajasthan

Posted -22 July 2026 | Author: Tractor Guru Team Share Post

TAFE Motors & DEUTZ Start New Engine Manufacturing Plant in Rajasthan

TAFE Motors and Tractors Limited has started operations at its new engine manufacturing plant in Alwar, Rajasthan. The facility has been set up in partnership with German engine company DEUTZ AG. This is the first manufacturing joint venture between TAFE Motors and DEUTZ.

The new plant will produce 2.2-litre and 2.9-litre DEUTZ-licensed diesel engines. These engines will be supplied to both the Indian and international markets. They will be used in sectors such as agriculture, industrial equipment, construction, and logistics.

Rajasthan Minister Inaugurates the New Facility

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

The engines will be manufactured under a regional licensing agreement with DEUTZ. Through this partnership, TAFE Motors will produce engines that meet international quality standards while serving customers in India and overseas.

Plant Capacity and Production Plans

The Alwar facility has an annual production capacity of 35,000 fully assembled engines. In addition, the plant can manufacture 50,000 engine sub-assembly components every year. The new unit has been developed to support the increasing demand for diesel engines across different industries.

TAFE Plans to Increase Engine Production

With the new plant, TAFE Motors aims to expand its engine manufacturing business and meet future market demand. The company expects the facility to improve its production capacity and strengthen its presence in both domestic and export markets.

TAFE and the Amalgamations Group have also announced plans to increase their total annual engine production. The group plans to raise production from 4,00,000 engines to 5,50,000 engines by 2030.

Partnership to Support Indian and Global Markets

The collaboration between TAFE Motors and DEUTZ will help bring advanced engine technology to India. The partnership is expected to improve manufacturing processes, support technology sharing, and produce engines that meet global standards. The new facility will also help supply engines to customers in India as well as international markets.

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