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TAFE Motors & DEUTZ Launch Engine Manufacturing Plant in Rajasthan

Published on: 24-Jul-2026
Updated on: 24-Jul-2026

TAFE Motors and Tractors Limited have officially opened its new engine manufacturing assembly line in Alwar, Rajasthan. The new plant was developed in collaboration with German engine maker DEUTZ AG and will be the first manufacturing joint venture between the two, which will help boost TAFE's engine manufacturing capability in the Indian and international markets.

Rajasthan Minister Launches New Facility

Rajyavardhan Singh Rathore, Minister of Industry and Commerce in the Government of the State of Rajasthan, opened the state-of-the-art manufacturing plant during a formal ceremony in Alwar. The launch marks a major step in TAFE's goal to expand its engine manufacturing business with state-of-the-art technology from around the world.

Engines for domestic and export markets by DEUTZ-License

The new Alwar facility will produce 2.2-litre and 2.9-litre internal combustion engines licensed by DEUTZ AG. These cutting-edge engines will be utilised in various machines, including agricultural machinery, industrial equipment, construction machinery, material handling equipment, and logistics vehicles.

The engines will be sent to Indian customers as well as the export market, further solidifying TAFE's footprint in the world market for engines.

Capacity: 35,000 Fully Assembled Engines done per annum

The company has built the Alwar manufacturing plant with an annual production capacity of:

35,000 fully assembled engines

50,000 engine sub-assembly components

The modern production line is developed in accordance with international production standards, with high quality, reliability and production efficiency.

TAFE is expanding significantly by 2030

Alwar is an integral component of TAFE Motors' overall manufacturing growth plans. The company, along with the Amalgamations Group, has announced its plans to double the total annual engine production capacity from 4,00,000 engines to 5,50,000 engines by 2030.

The expansion is designed to meet the growing need for technologically advanced diesel engines for agriculture, industrial use, construction and export.

PBM is encouraging partnerships to boost technology and manufacturing.

The partnership with DEUTZ AG is expected to speed up technology transfer, empower the manufacturing capabilities, and allow TAFE Motors to offer global-compliant engine solutions. The partnership between DEUTZ and TAFE is expected to enhance the quality of products and will assist customers in the domestic and international markets.

Industry Outlook

The order of the Alwar engine manufacturing plant is a significant development in India's manufacturing ecosystem. As more and more OEMs across agriculture, industrial equipment, logistics and construction sectors are looking for high-performance and fuel-efficient diesel engines, the new facility is poised to make a strong contribution towards supporting OEMs and boosting the export potential of the Indian engine market.