Force Motors to Invest Over ₹3,000 Crore in Expansion and Hybrid Powertrains

Force Motors is set to invest more than ₹3,000 crore in the coming two and a half years. This significant capital expenditure will focus on expanding its product range and developing hybrid powertrains. The company anticipates a boost in exports and is enhancing its manufacturing capabilities. Investments include a new paint shop and automation.

Listen to this article in summarized format

Loading...

×

Mumbai: Force Motors plans to spend more than ₹3,000 crore in capital expenditure over the next two and a half years to expand its product portfolio and develop hybrid powertrains, among other activities, said Prasan Firodia, managing director.

He said the fresh investments are aimed at creating additional capacity on expectations of a boost in exports in the coming years.

Also Read: Sebi seeks clarification from Force Motors on results disclosure, share price movement

“We are investing across creating new variants, capacity enhancement, future hybrid drivetrains, and legislation compliances across the value chain," Firodia told ET. The outlay includes a new paint shop, a ₹150-crore digitisation programme, and automation across shop floors.

The expansion will be funded entirely through internal accruals, said Firodia.

Live Events

Force Motors ended FY26 with zero debt, revenue of ₹9,000 crore, up from ₹8,000 crore, and profit before tax of about ₹1,600 crore.

Supply chain disruptions, worker shortages at Tier 1 and 2 suppliers, election-related labour absenteeism, and rising logistics costs crimped monthly output to around 3,000 units against a run rate of 4,000, creating a backlog of 1,500-2,000 units. "Demand is very strong,” said Firodia. “We are not able to supply adequately.”

Firodia said the Urbania multi-utility vehicle, positioned in a higher segment, has been a bright spot, averaging 700 units per month, which the company is aiming to grow to 1,000 units.

Force Motors has started exporting the Urbania to Latin America, Gulf, and selects markets in Africa, while the Traveller N commercial minibus is being readied for emerging markets.

Meanwhile, the company’s joint venture with Rolls-Royce, in which Force Motors holds a 51% stake, is adding to the revenue mix. The Pune facility manufactures V12 diesel and gas engines for global supply under the Rolls Royce brand. "Those engines are produced in India for worldwide requirement," Firodia said.

Also Read: With Rs 2k cr war chest, Force Motors gears up to expand global play, bolster product range

On electric vehicles, Force Motors has developed fully electric versions of the Traveller and Traveller ambulance. However, commercial traction has been limited due to the absence of government incentives.

"The vehicles are fully ready,” he said. “There is no point launching if there is no demand.”

(You can now subscribe to our Economic Times WhatsApp channel)

(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)

Subscribe to The Economic Times Prime and read the ET ePaper online.

...moreless

(You can now subscribe to our Economic Times WhatsApp channel)

(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)

Subscribe to The Economic Times Prime and read the ET ePaper online.

...moreless