Force Motors plans portfolio rejig

To introduce small 4-wheel load carrier in Q3.

Force Motors (formerly Bajaj Tempo), manufacturer of commercial vehicles, will introduce a small four-wheel load carrier in the third quarter of the current year.

The company is also in the process of completely revamping its commercial and passenger vehicles portfolio to "bring them in line with customer aspirations."

Force Motors chairman and managing director Abhay Firodia told media persons on the sidelines of the company's annual general meeting on Saturday that the shift in the three- wheeler and four-wheeler market in favour of smaller and lighter vehicles, guided by the considerations of rising fuel costs, has triggered the development of a small 4-wheeler, which is a variant of its Minidor CB goods carrier.

Firodia did not comment on the pricing of the new offering nor did he respond to a query whether the product would compete with Tata Motors' highly successful Ace.

Firodia said the company was making all efforts to revamp its existing range of goods and passenger vehicles.

"We will upgrade all our products in terms of their design, looks, colour and power rating or features to make them contemporary and realign them with the market aspirations," he said.

The entire process might take up to three years and need an investment of Rs 700 crore, he added.

Force Motors' 70:30 joint venture with MAN Nutzfahrzeuge (MAN) has started production of heavy commercial vehicles and the first few truck have been sold in domestic and export markets, according to Firodia.

The company showcased the trucks at the recent commercial vehicles fair in Hanover, Germany, and evoked considerable response from the market, he claimed.

The company is in the process of transferring its assets including buildings and machinery to the joint venture and begin the regular production of trucks with capacities between 15tonnes and 49 tonnes next year.

"Force MAN trucks will achieve 90 per cent indigenisation by March, 2007 to extract the full benefit of producing in India the trucks meant for global markets," Firodia said.

The JV's plant at Pithampur has a capacity of 24,000 trucks and is expected to reach 50 per cent export level in three to four years. The vehicles to be brandnamed 'MAN' trucks will be marketed globally by the German collaborator, he said.

They would be exported to emerging markets such as South Africa, North Africa, Indonesia or Middle East where they would meet the power rating norms.

In the domestic market, the trucks would be distributed through 25 dealerships, Firodia said, adding that the pricing of the trucks would be on the higher side.

"We have incorporated high technology in the products that are on par with the best in the world. The nine-gear trucks will be launched in India and globally (by MAN) simultaneously," he said.

In 2007, the company's attention would be on the bus segment. The company would consider a mix of front engine, rear engine and low deck buses with CNG fuel versions, he added.