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Force Motors board approve purchase of Pithampur plant of MAN Trucks

Auto News - Published on Fri, 24 Aug 2018

Image Source: ET Auto
ETAuto reported that the Board of commercial vehicle maker Force Motors has approved the purchase of assets of MAN Trucks India, at its plant in Pithampur, Madhya Pradesh. Force Motors said “The Board of Directors has accepted the proposal received from MAN Trucks India Pvt Ltd in respect of sale and transfer of its certain assets, being immovable properties, movable properties and other assets of intangible nature, situated at its plant at Pithampur.”

This arrangement is being recorded by binding agreements, Force Motors said, adding that the arrangement would be subject to receipt of necessary approvals.

Early this month, Volkswagen Group-owned MAN Trucks decided to discontinue its operations from the country, hit by falling demand for the premium truck range in India. It had said "The company has decided to restructure the India organisation. This decision is based on MTB's global strategy to focus on premium segment markets. The manufacturing, sales, and exports of the CLA range will be stopped after the existing customer orders are completed."

MAN Trucks had put its Pithampur plant up for sale while the employees would continue to work till the orderbook is executed by October. The Pithampur plant, which has been in operation since 2006, has an annual production capacity of 10,000-12,000 units. MAN trucks will have aftersales as an active function for the next five years to provide support to its customers.

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Posted By : Joykumar Irom on Fri, 24 Aug 2018
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