Force Motors Limited has signed a licence agreement with Daimler AG (Daimler) to source technology for a multiple purpose vehicle (MPV) in India.
This comprehensive supply of product technology will facilitate the entry of Force into the segment of passenger and goods vehicles, which is adjacent to its current product line of the "Traveller" light commercial vehicle.
"Force is engaged in a dialogue with the Madhya Pradesh government to locate a new plant for the production of the MPV at Pithampur. The production of this new product is expected to commence towards the end of calender year 2012 with an initial capacity of about 24,000 vehicles per annum," the company said in a statement.
It added, "Uprated versions of this engine are adapted for use in the SUV -- Force One -- being launched by Force Motors shortly. Similar variants will be adapted for installation in the new MPV, for which the above technology licence is being obtained."
Currently, Force Motors has a contract manufacturing agreement with Daimler for assembling engines and axles for luxury passenger cars of the German firm's subsidiary Mercedes Benz India.
Force already has on-going arrangement with MBtech Powertrain GmbH (MBtech), for sourcing technical assistance in regard to engine installation, vehicle build quality, electronic refinement, etc.
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It is intended that the MPV, to be introduced under the new technical licence, will also receive support from MBtech.
Earlier, Daimler AG (then Daimler Benz AG) was a stakeholder in Force and had licenced to Force (then Bajaj Tempo Limited) the Traveller range of light commercial vehicles and OM 616 engine.
Since 2001, Daimler no longer holds shares in Force.