Tata Cummins to increase engines capacity

Cummins Inc and Tata Motors have signed an agreement that will allow their joint venture, Tata Cummins Ltd (TCL), to begin manufacturing the popular ISB engines.

A company press release said the expansion will significantly increase the number of engines produced by the joint venture and will strengthen Cummins position as a leading producer of engines for the growing medium and heavy-duty commercial vehicles market in India.

TCL currently produces approximately 69,000 Cummins B Series engines a year.

Under the agreement, TCL will increase its total engine production to 100,000 units within two years and 120,000 units thereafter. The engines produced by TCL will meet Euro 2, Euro 3 and Euro 4 standards for diesel emissions.

"The expansion will need an additional investment of $60 million. The funding will come from TCL's ongoing cash flow and joint venture debt," the release said. TCL, formed in 1992, manufactures the Cummins B Series engines in India for use in trucks manufactured by Tata Motors, as well as for sales by Cummins to other applications and OEMs," the release said, quoting Anant Talaulicar, chairman, Cummins India and managing director, Tata Cummins Limited.