Force Motors has plans to invest Rs 1000-crore over the next two years to increase its manufacturing facility and launch two vehicles including the Force One SUV later this month.
Coming to the investments, the company will raise using internal resources and by loan. The company may also look at to take the capital market route and propose a rights issue said by Dr Abhay Firodia, Chairman, Force Group.
Force Motors is currently in talks with the Madhya Pradesh government for incentives to set up a new manufacturing plans for all-new MPV due to be launched in 2012.
“We may set-up a new assembly line at our existing facility at Pithampur, or even consider going outside the state with a third plant. It all depends on the deal we get,” he said, adding that decision will be finalised over the next two months. The installed capacity of the new line will be 12,000 units per annum that can be expanded to 24,000 units.
Force Motors has set up a separate Passenger Vehicle Division and was working and developing on the new SUV for the last one year.
“We will stick to SUVs and MPVs. We don’t want to make sedans — of that we are clear at this stage,” Dr Firodia said.
Force Motors MPV will compete against the Toyota Innova which is currently ruling this segment in India. The company has decided not to collaborate for the purpose of manufacturing where the company had engineering capabilities to build a vehicle from scratch and will source technical know-how where it was needed.
Coming to the commercial vehicle segment, the company is looking to expand its tractors business that will range from 25-60 HP that are made at its Akurdi plant.
“We will add five to six new models, some smaller (15-20 HP) and some larger, (60-100 HP), ” Dr Firodia revealed, adding that part of the proposed Rs 1000 crore investment will go to scale up its tractor manufacturing capability from 4,000 units to 24,000 units per annum.