Pune-based Force Motors to invest around Rs 100 crore to set up an engine manufacturing and testing facility in Tamil Nadu.
Prasan Firodia, managing director, Force Motors Ltd said that the new facility will be for a global passenger car manufacturer, with whom the company signed an agreement recently to supply engines.
While refusing to reveal the name of the OEM, he said going forward the facility can also cater to other OEMs in and around the plant.
The facility will be located at Anjur, Kancheepuram district in Tamil Nadu.
"Mainly it is a diesel engine facility, but if required we can also manufacture petrol engines," said Firodia.
Supply from this next generation plant is expected from January 2015, he said, while declining to share the capacity of the plant.
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It may be noted, Force Motors has been assembling the Mercedes Benz engines and axles for all its C, E, S and M class cars and SUVs built in India.
Force Motors has been assembling and testing the Mercedes Benz engines for its passenger cars made in India, at the Urse plant. Since 1999, the company assembled over 42,000 engines, according to company's website.