Indian commercial vehicle manufacturer Force Motors in a BSE filing has confirmed that the company's board has approved the acquisition of Pithampur-based manufacturing plant of MAN Trucks. Earlier in August, Volkswagen Group-owned MAN Truck & Bus decided to exit from Indian market to increase its focus on the premium segments of the global markets and had put its assets including the plant up for sale.
Force Motors is now set to acquire MAN Trucks India plant after the necessary approval and will complete the acquisition by the end of October 2018 or as agreed between the company and MAN Trucks India Private Limited. The company has not disclosed the invested amount in this deal. MAN Trucks India further confirmed that as a part of this agreement, existing employees at MAN will continue to entail its jobs. As quoted by the company's spokesperson in a PTI report, "MAN Trucks India and Force Motors Ltd have entered into an agreement wherein Force Motors will acquire the Pithampur manufacturing facility of MAN. The agreement also entails continued employment for all MAN members at Pithampur."
MAN Trucks has decided to restructure its operations in India as a part of its global strategy and focus on premium segments. Man Trucks India would now become an R&D Centre for its global projects. However, the company will cease the manufacturing, sales and exports of its CLA range of heavy commercial vehicles after completing existing orders by October 2018. The Pithampur facility manufactured tippers for off-road and construction, haulage for regular and over dimensional cargo, and special application trucks such as fire tenders, garbage compactors, concrete mixers, boom pumps, tip trailers and bulkers.
MAN Trucks had put all its existing products and new launches on hold since July 2018 and now Force Motors will take over its plant. MAN Trucks has sold around 25,000 trucks in India since it started its India operations back in 2006.