Force Motors to invest R550 crore to expand capacity

Written by Ronojoy Banerjee | Ronojoy Banerjee | New Delhi | Updated: Dec 28 2011, 06:42am hrs
Pune-based Force Motors has lined up an investment of Rs 550 crore in an effort to invest in its existing product portfolio and expand capacity. The company would invest the entire investment sum in the next calendar year. A chunk of that investment is likely to go into its flagship brand the Traveller, a mid-sized delivery van, and its newly launched sports utility vehicle Force One. The investment forms a part of the Rs 1,000-crore corpus the company had set aside last year of which Rs 450 crore has already been invested.

The SUV market in India is growing and we want to have a presence in this segment, managing director of Force Motors Prasan Firodia told FE. At present, the company has a manufacturing facility at Prithampura in Madhya Pradesh. According to Firodia, who is the son of Abhay Firodia chairman of Force Motors, the size of the SUV market in India is around 1.6 lakh units. We want to operate within 60,000 units space, he said.

Force Motors, formerly known as Bajaj Tempo, has been known for their traditional marquee brands such as the Tempo and the Matador. After the name change in 2005 the company made a bold decision to diversify into the passenger vehicle space in August last year with a new SUV - Force One. Priced at Rs 10.6 lakh the SUV would compete with the Mahindra Xylo and Scorpio.