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Force Motors ties up with German firm

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Siddharth Zarabi Hannover
Last Updated : Mar 07 2013 | 5:23 PM IST
Pune-based automotive company Force Motors and Germany's commercial vehicle company Neoman Bus Group has agreed to set up a joint venture in India for manufacturing next-generation luxury buses and low-floor city buses.
 
The initial investment is estimated at ¤100 million (Rs 530 crore), according to Force Motors.chairman and managing director Abhay Firodia.
 
Force Motors will hold 70 per cent in the JV with Neoman owing the rest. The JV, for which a name is yet to be finalised, aims to produce 4,000 buses a year, each costing Rs 40 lakh. The deal was signed today by Firodia and MAN Nutzfahrzeuge CEO Anton Weinmann.
 
Firodia said the JV would export the vehicles to Asian and African countries. "It is an opportune alliance -""MAN has the technology while we have the manufacturing capability. They will market the vehicles that we will produce," he added.
 
The two companies had earlier established a separate joint venture "" Man-Force Trucks Ltd "" for manufacturing heavy trucks at Pune. That plant will start production next week and aims to churn out 24,000 vehicles a year.
 
"Nearly half of this production will be exported, while the remaining is meant for the Indian market," Firodia said.

 

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