Force Motors gears for a 'force'ful expansion of Rs 1000cr

1424 Investors following Force Motors. Share this News with them.

0

Like this story, share it with millions of investors on M3

Force Motors gears for a 'force'ful expansion of Rs 1000cr

Force Motors wants to emerge as a force to reckon with. Not only did it diversify and launch its first SUV today but the auto manufacturer has also announced Rs 1,000 crore investment plan for its passenger, commercial vehicle and tractor business, reports CNBC-TV18’s Swati Khandelwal Jain.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ See latest News about Force Motors See previous management interviews See what other Experts & Brokerages are saying about Force Motors

Force Motors wants to emerge as a force to reckon with. Not only did it diversify and launch its first SUV today but the auto manufacturer has also announced Rs 1,000 crore investment plan for its passenger, commercial vehicle and tractor business, reports CNBC-TV18's Swati Khandelwal Jain.

Force Motors is taking a different road. So far the Indian manufacturer has specialized in small and light commercial vehicles but their latest is its first SUV - the Force One.

Priced competitively at Rs 10.65 lakh (ex-showroom Delhi), Force One is a product of the company's technology tie-up with Daimler. Although it has to compete along with Mahindra Scorpio, Tata Safari and Toyota Innova in the SUV space the company believes its pricing strategy will help in achieving its sales target of 4000 units in the first year.

"We have an integrated tech, R&D and engineering set up that has helped keeping costs low," said Abhay Firodia, chairman of the Force Group.

The company will invest Rs 1,000 crore over the next two years to increase its manufacturing footprint in India. The funds will be raised through a combination of internal resources and loan, and the company may also look at taking the capital market route and propose a rights issue.

The company has plans for an all-new MPV in late 2012 besides renewed focus on its tractor business.

Force Motors is also looking at expanding its current range of tractors by adding at least five to six new models. This will take the tractor manufacturing capability from 4,000 units to 24,000 units per annum.