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Man Nutzfahrzeuge AG, the german commercial vehicle is likely to buy minority 25% stake in its joint venture with Pune based Force Motors. The companies signed a joint venture agreement on Wednesday to make heavy commercial vehicles for the Indian and asian markets. Sources said, "Although the JV structure has yet not been finalised it is unlikely that the German auto maker will hold a stake of more than 25% in the venture." The JV will enable Force Motors, a significant player in light commercial vehicles, multi utility vehicles and tractors , foray in the booming medieum and heavy commercial vehicle market. The CV industry is expected to witness a growth of around 8.3% this financial year. The joint venture will engage in setting up production facilities, development and manufacture of MANs heavy trucks, their marketing and the purchase of parts. The JV is targetting the first quarter of 2006 to roll out its first MAN Truck in the domestic market, while production for exports is expected to begin in 2007. The vehicles, with a level of component localisation will be marketed in India through the JV, while MANs global distribution network will market them in the Asian, African, and the Far East. Force Motors had entered a technical licensing agreement with MAN in August , 2003 for making medieum and heavy commercial vehicles in the range of 16-25 tonne. The company had recently rolled out a prototype of a 40-tonne HCV and had announced commercial production by April 2006. |
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| Posted : 11/12/2005 |
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