DEUTZ AG ('DEUTZ') signed a co-operation agreement with the Indian agricultural machinery group TAFE Motors and Tractors Limited ('TMTL') at the beginning of July 2024. DEUTZ is thus underpinning its "Dual+" strategy with another important element, which provides for both the further development of alternative drive systems and the expansion of the combustion engine business.

The Taylor Wessing team led by Stephan Manuel Nagel, Dr Anja Lunze and Sebastian Rünz (together with Dr Aurel-Damian Roscher, Marieka Müller-Steinmann, Lara Skotki and Jennifer Vogd) advised DEUTZ on IP, competition and contract law issues during the contract negotiations.

DEUTZ is one of the world's leading manufacturers of innovative drive systems for the off-highway sector. The listed company's core competences lie in the development and production of diesel, gas, hydrogen and electric drive systems, particularly for construction and agricultural machinery, material handling applications such as forklift trucks or hydraulic platforms and commercial and rail vehicles for private and commercial use. With around 5,000 employees worldwide and almost 900 sales and service partners in more than 130 countries, DEUTZ generated revenue of more than €2 billion in the 2023 financial year.

With TMTL, DEUTZ now has a partner at its side with whom it can expand its business activities in the rapidly growing Indian market. TMTL is part of the TAFE Group, one of the world's largest tractor manufacturers. As part of the co-operation, TMTL will manufacture up to 30,000 engines with a displacement of 2.2 litres (50-75 hp) and 2.9 litres (75-100 hp) under licence from DEUTZ in Alwar, Rajasthan, India. The co-operation with TAFE should enable DEUTZ to continue to produce the small combustion engines at competitive costs and to be less dependent on the current supplier landscape. Through the co-operation, DEUTZ is expanding its supplier base to ensure more efficient and resilient production. It also reduces dependence on supply chains in regions with geopolitical tensions without sacrificing the associated cost benefits. This benefits DEUTZ's German production sites in particular. The co-operation also provides DEUTZ with access to high-quality yet affordable engines for new applications in India and relevant foreign markets.

TMTL profits from the strategic co-operation with DEUTZ in various aspects: the co-operation gives TMTL access to joint resources and technologies to produce engines that complement the existing TMTL and DEUTZ product ranges and to meet demand from both domestic and international markets.

Taylor Wessing is an international commercial law firm with over 1,200 lawyers in 17 offices, providing clients worldwide with full-service legal advice of the highest quality.

Legal Advisor DEUTZ AG

Inhouse DEUTZ AG: Juliane Kern, LL.M.

Taylor Wessing

IP law: Dr Anja Lunze, LL.M. (Partner) and Dr Aurel-Damian Roscher (Senior Associate), both Munich

Competition law: Stephan Manuel Nagel, LL.M. (Partner) and Marieka Müller-Steinmann (Associate), both Düsseldorf; Lara Skotki (Senior Associate), Hamburg

Commercial and distribution law: Sebastian Rünz, LL.M. (Salary Partner), Jennifer Vogd (Senior Associate), and Louis Warnking (Associate), all Düsseldorf

Brands and advertising: Dr. Christian Tenkhoff (Partner), Munich