Force Motors is investing ₹3,000 crore to expand its van business and develop electric vehicles. The company saw retail registrations rise 48.9 per cent during the September quarter. "We are ramping up capacity," said Managing Director Prasan Firodia. Despite export challenges, the debt-free firm now targets 80,000 units annually.
Debt-free company targets 80,000 units annually amid 48.9% y-o-y retail growth; exports hit by West Asia disruptions
Pune-based Force Motors is investing ₹3,000 crore over the next two-and-a-half to three years to expand its Traveller and Urbania van business, develop electric and hybrid vehicles, and upgrade manufacturing and engineering capabilities, as a sharp recovery in domestic demand boosts growth prospects.
The debt-free automaker plans to fund the entire investment through internal accruals while increasing installed production capacity to 80,000 vehicles annually from current levels.
"We are ramping up capacity. That investment is not just on capacity increase. It is going into our EV platforms, hybrids, new variants and engineering infrastructure," said Prasan Firodia, Managing Director, Force Motors.
The company expects installed capacity to reach around 65,000 vehicles next year before scaling up to its long-term target of 80,000 units. The capex programme also includes paint-shop modernisation, engineering infrastructure upgrades and digital transformation initiatives under Project DigiForce.
The investment push comes as Force Motors sees a strong rebound in domestic sales following the rollout of the upgraded Traveller N. According to Vahan data, the company's retail registrations rose 48.9 per cent year-on-year (y-o-y) to 11,214 vehicles during the September quarter, helping reverse weakness seen earlier in the fiscal year.
"We knew it would be a painful transition," Firodia said, referring to production and supplier adjustments linked to the launch of Traveller N.
The company is also seeing traction in its premium Urbania van range. With the launch of Urbania Deluxe earlier this year, Urbania volumes are nearing 1,000 units a month, driven by demand from corporate employee transportation, tourism and hospitality segments.
While domestic demand remains robust, exports continue to face headwinds. Overseas shipments fell 34.8 per cent in the September quarter amid disruptions in West Asia, one of Force Motors' key export markets. The company is looking to expand its international presence through assembly operations in Kenya, distribution partnerships across African markets and exports to Latin America.
Electrification remains a key focus area. Force Motors is developing hybrid powertrains for its 10-25 seater vehicle range and plans to introduce electric ambulances and a Traveller EV line-up. However, the company has yet to announce a timeline for an electric Urbania.
Despite the aggressive investment cycle, Force Motors remains financially comfortable. Consolidated revenue rose 40.5 per cent y-o-y to ₹2,924.7 crore in the September quarter, although net profit fell 16.2 per cent to ₹293.9 crore due to a high base that included a one-time tax benefit last year.
"We still believe we have a lot of potential to grow what we have. First, let's leverage that," Firodia said. "Let's leverage that in terms of domestic markets, international markets. Let us create new variants to create new segments. That's our focus."