It is reported that Force Motors is planning to set up a third manufacturing facility to produce smaller trucks. The company has said it would invest around INR 400 crore in the proposed greenfield facility, as part of its INR 1,000 crore investment over the next three years.
According to a senior company representative, meanwhile, the company's premium sports utility vehicle will be launched in March and its multi utility vehicles in 2012. Besides, some of its existing products will be upgraded.
The new facility will attract an investment of around INR 350 to INR 400 crore and will have an initial capacity of 100,000 vehicles.
Mr Prasan Firodia managing director of Force Motors Ltd said that the company was planning to set up a greenfield facility to manufacture small trucks Trump, which was launched six months back. He said that “We are also planning to expand our offerings in this segment by launching two more new products by mid-2012.”
He said that “We will take a final call on the location in the first quarter of next year. One of the options is South India.”
Mr Firodia said the launch of its SUV was postponed from December 2010 as setting up of exclusive dealership, team and others were getting delayed. To start with, the company is planning to appoint 45 dealers. He added that “This segment is totally new to us and we have to set up a completely new vertical including new dealers, internal team in the office.”
The product will be priced at around INR 1,200,000. Currently the market is estimated to be around 70,000 vehicles a year. The company is also investing around INR 200 crore for the proposed foray, which includes setting up a new plant at Pithampur, Madhya Pradesh, with an initial capacity of 12,000 units a year, which can be doubled.