DEUTZ inks cooperation with TAFE, India's leading agricultural group

EQS-News: DEUTZ AG / Key word(s): Alliance/Miscellaneous
DEUTZ inks cooperation with TAFE, India's leading agricultural group

01.07.2024 / 19:47 CET/CEST
The issuer is solely responsible for the content of this announcement.

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* Advantages for German locations due to broader supplier base

* Cooperation to be extended to green drives

Cologne, July 1, 2024 - DEUTZ is adding another cornerstone to its Dual+
strategy, which includes both the further development of alternative drive
systems and the expansion of the internal combustion engine business. The
cooperation with the Indian agricultural group TAFE Motors and Tractors
Limited announced today allows DEUTZ to expand its business in India,
tapping into one of the fastest growing markets worldwide. TAFE Motors is
the subsidiary of TAFE, the third largest tractor manufacturer in the world.
In 2023, the Indian economy grew by around 6 to 7 percent and it is expected
that India's gross domestic product (GDP) will quadruple by 2050. The
agricultural and construction sector will play a major role in achieving
this strong growth.

As the beginning of a long-term cooperation, TAFE Motors will manufacture up
to 30,000 DEUTZ-engines in 2.2 Liter (50-75 hp) and 2.9 Liter (75-100 hp)
under license. The aim is to augment and complement the wide range of
engines made by the Group across emission standards. TAFE Motors will
produce engines to suit growing demands of the Indian market as well as for
DEUTZ's requirements. The engines will be produced in TAFE Motors' modern
manufacturing facility at Alwar, Rajasthan in India.

DEUTZ will use the Indian manufacturing base to market its engines in
neighboring markets (esp. APAC), benefitting from advantages in production
and logistics.

'The strategic cooperation with TAFE Motors secures DEUTZ access to growing
markets with strong potential and long-term prospects,' explains DEUTZ CEO,
Dr. Sebastian C. Schulte. 'It also enables us to continue producing at
competitive costs in the future and makes us less dependent on the existing
supplier landscape, which is becoming increasingly challenging due to the
technological shift and geopolitics'.

The cooperation gives DEUTZ the opportunity to expand its supplier base to
ensure a more efficient and more resilient production. It will also reduce
its dependence on supply chains in geopolitically tense regions - without
sacrificing the corresponding cost benefits. This particularly benefits
DEUTZ's German production sites.

Speaking on behalf of TAFE Motors, Sandeep Sinha, CEO of TAFE Motors said,
'This strategic cooperation between TAFE Motors and DEUTZ will be mutually
beneficial, as it will offer access to shared resources and technologies to
produce engines that complement TAFE Motors' and the Group's existing range
to meet the demand for both domestic and international markets. This
cooperation will also offer DEUTZ access to high-quality engines at best
cost for new applications in Indian and relevant overseas markets'.

Both parties are exploring opportunities to expand the cooperation to green
drives.

For further information on this press release, please contact:

     Mark Schneider
     Head of Investor Relations, Communications & Marketing
     Tel: +49 (0)221 822 3600
     Email: (1)Mark.Schneider@deutz.com

1. mailto:Mark.Schneider@deutz.com
About DEUTZ AG

DEUTZ AG, a publicly traded company headquartered in Cologne, Germany, is
one of the world's leading manufacturers of innovative drive systems. Its
core competencies are the development, production, distribution, and
servicing of drive solutions in the power range up to 620 kW for off-highway
applications. The current portfolio extends from diesel, gas, and hydrogen
engines to all-electric drives. DEUTZ drives are used in a wide range of
applications including construction equipment, agricultural machinery,
material handling equipment such as forklift trucks, stationary equipment
such as generator sets (gensets) and lifting platforms as well as commercial
and rail vehicles. With over 5,000 employees worldwide and around 1,000
sales and service partners in more than 120 countries, DEUTZ generated
revenue of over EUR2.1 billion in the 2023 financial year. Further information
is available at www.deutz.com.


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01.07.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        DEUTZ AG
                   Ottostraße 1
                   51149 Köln (Porz-Eil)
                   Germany
   Phone:          +49 (0)221 822 2491
   Fax:            +49 (0)221 822 3525
   E-mail:         svenja.deissler@deutz.com
   Internet:       www.deutz.com
   ISIN:           DE0006305006
   WKN:            630500
   Indices:        SDAX
   Listed:         Regulated Market in Dusseldorf, Frankfurt (Prime
                   Standard); Regulated Unofficial Market in Berlin,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1937313

End of News EQS News Service
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1937313 01.07.2024 CET/CEST