Domestic commercial vehicle major, Force Motors’ Board today announced that it has accepted the proposal from MAN Trucks India for purchasing certain assets, including immovable properties, movable properties, and other assets tangible, situated and being used by MAN Trucks at its Pithampur plant in Madhya Pradesh.
Force Motors says that the arrangement has been recorded by binding agreements, subject to necessary approval.
As per a MAN Trucks India spokesperson, under the agreement inked between MAN Trucks India and Force Motors, Force Motors will acquire MAN's Pithampur manufacturing facility. The agreement also entails continued employment for all MAN Trucks India staffers at the Pithampur plant.
This development is consequent to the announcement from MAN Trucks earlier in August to restructure its India operations and its intent to sell its manufacturing plant with the objective being to provide continuity of employment for Pithampur Plant workers. MAN Trucks India, however, has not divulged any details of the agreement, including commercials, with Force Motors.
Autocar Professional first reported about MAN's plan to exit India, on 11th July. Fifteen years after entering India, MAN, the German commercial vehicle major and one of the Europe's leading truck makers MAN, has decided to exit the market. There are multiple reasons are behind this decision. A focus on fewer markets globally with premium products is a key one and the unexpected level of competition in the Indian trucking industry could be another.
MAN had entered India through a collaboration with Force Motors in 2003. The collaboration turned into a joint venture in 2006. The JV partner's stake was bought over in 2012 for the German to start a solo drive. In May 2017, the company had introduced its latest EVO range equipped with a BS-IV engine.
According to Force Motors, the actual transfer is expected to be completed by end-October 2018, or as may be agreed between the two companies.