Pune-based Force Motors plans to invest up to Rs 1,000 crore to set up two new product lines for manufacturing special utility vehicles (SUVs) and multi-utility vehicles (MUVs). The company is better known as the manufacturer of Tempo and Matador under the brand name Bajaj Tempo.
?We realised that entering the SUV space would be a logical progression from what we are already producing. It has also been prompted by our efforts to be present in the passenger vehicle space,? Force Motors managing director Prasan Firodia told FE. The company would be setting up an entirely new vertical to power its SUV plans, he added.
?We would launch the SUV in phases, starting from the Western region,? Firodia said. The SUV would be positioned in the upper mid-segment with a starting price of Rs 12 lakh. In comparison, Mahindra?s Xylo costs between Rs 7.7 lakh and Rs 11.5 lakh. The Qualis is priced around Rs 5.5 lakh. The overall market size for SUVs in the country is around 70,000 units per year. In the first phase, Force plans to produce around 12,000 SUVs annually.
The company manufactures tractors, three-wheelers and, light and heavy trucks. ? The competition levels in these segments (MUV and SUV) are still relatively low. Also, since our expertise is in developing heavier products it makes perfect sense for us,? he added.
Force Motors has two subsidiary firms ? Jaya Hind Industries and Man Force.
