Force Motor forays into SUV segment

Posted By: Religare
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Force Motor forays into SUV segment
India's Force Motors plans to introduce three utility vehicles by mid-2013, marking its entry into the country's expanding passenger car market.

A sport utility vehicle will hit the market in a month's time, followed by a multi-purpose vehicle at the end of 2012 and a second sport utility vehicle in the middle of 2013. The company plans to sell 4,000 units of its first sport utility vehicle in the first 12 months from launch and 9,000 in the following year.

The company has so far invested Rs.150 crore on its SUV foray and has the capacity to make 12,000 units a year at its central Indian plant. The company will purchase about 75% of the vehicle's parts locally and source technology to build the engine and gearbox from Daimler AG.

Force SUV will be positioned between the entry and mid-range SUVs. Pricing is likely around Rs 12-14 lakhs. The entry segment is marked by the Mahindra Scorpio and the Tata Safari, while the mid range SUVs are the Ford Endeavour and Toyota Fortuner.

Force Motors currently sells light and medium trucks and buses under its brands such as Traveller and Trump, as well as tractors. It also has a joint venture with Germany's MAN Nutzfahrzeuge AG to make heavy trucks.

Indian auto makers sold 324,212 utility vehicles last fiscal year ended March 31, up 19% from the previous year. Force Motors are the pioneers of the Light Commercial Vehicle (LCV) Industry that gave India iconic brands like the Tempo, Matador and Traveller.

Read more about: force motors, automobile, bse
Story first published: Friday, June 24, 2011, 9:31 [IST]
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