Mumbai, May 1: MAN Nutzfahrzeuge AG and Indian major Force Motors Limited will invest 150 million Euros in a joint venture to manufacture heavy trucks at its Pithampur plant, initially for the Indian market and later for export to other Asian and African markets.
Christened MAN Force Trucks Private Limited, Force Motors will hold 70 per cent stake in the JV with MAN Nutzfahrzeuge holding the remaining 30 per cent.
Similarly, the scope of co-operation between the two partners is likely to be expanded to the bus sector as well for which a new joint venture company will be formed, a release here today said.
The release stated that the JV covers production of heavy trucks under the MAN and FORCE brands for India and under the Man brand for overseas markets, adding that the trucks will not be exported to Europe.
In India, the vehicles will be sold by the JV while outside India, they will be sold by the MAN sales organisation.
''This partnership with Force will make MAN more international and open up new growth markets for us. Together with Force, we are making an important contribution to the development of transport logistics in this emerging country and in the entire region,'' said Mr Hakan Samuelsson, Chairman of the Executive Board of MAN AG.
MAN Nutzfahrzeuge will provide the JV's Chief Technical Officer and three of the nine members of the Board of the Directors.
The new product family destined for export outside India will range from long-haul trucks, semi-trailer tractors and tippers to special-purpose vehicles with different axle variants and will bear the name MAN Cargo Line.
''This will make MAN Force Trucks Private Limited the only manufacturer in India to offer a complete range of trucks for all types of deployment,'' stated the release.
By end-2006, the local content in production and supplies from India will be increased to well over 90 per cent with Force Motors Limited building axles and engines for the JV. ''The existing infrastructure at the Force Motors Ltd. plant in Pithampur is being extended and will be used for production of the joint venture vehicles,'' pointed out the release.
The high local content in production and procurement will enable savings of up to 30 per cent of the material costs that would otherwise have to be incurred in Germany, added the release.
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Christened MAN Force Trucks Private Limited, Force Motors will hold 70 per cent stake in the JV with MAN Nutzfahrzeuge holding the remaining 30 per cent.
Similarly, the scope of co-operation between the two partners is likely to be expanded to the bus sector as well for which a new joint venture company will be formed, a release here today said.
The release stated that the JV covers production of heavy trucks under the MAN and FORCE brands for India and under the Man brand for overseas markets, adding that the trucks will not be exported to Europe.
In India, the vehicles will be sold by the JV while outside India, they will be sold by the MAN sales organisation.
''This partnership with Force will make MAN more international and open up new growth markets for us. Together with Force, we are making an important contribution to the development of transport logistics in this emerging country and in the entire region,'' said Mr Hakan Samuelsson, Chairman of the Executive Board of MAN AG.
MAN Nutzfahrzeuge will provide the JV's Chief Technical Officer and three of the nine members of the Board of the Directors.
The new product family destined for export outside India will range from long-haul trucks, semi-trailer tractors and tippers to special-purpose vehicles with different axle variants and will bear the name MAN Cargo Line.
''This will make MAN Force Trucks Private Limited the only manufacturer in India to offer a complete range of trucks for all types of deployment,'' stated the release.
By end-2006, the local content in production and supplies from India will be increased to well over 90 per cent with Force Motors Limited building axles and engines for the JV. ''The existing infrastructure at the Force Motors Ltd. plant in Pithampur is being extended and will be used for production of the joint venture vehicles,'' pointed out the release.
The high local content in production and procurement will enable savings of up to 30 per cent of the material costs that would otherwise have to be incurred in Germany, added the release.
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