Force Motors will spend around Rs.1,000 crore on a new high-end van, some variants of its sports utility vehicle (SUV) Force One, and refurbishing of other vehicles by 2014-15, a company official said Tuesday.
The Pune-based company rolls out vehicles ranging from tractors, multi-utility vehicles (MUV), light commercial vehicles (passenger and goods carriers) and small commercial vehicles.
"Next year we want to be in premium high-end van segment. The van will have Daimler technology. A production line for the van is being set up at the company's Pithampur (Madhya Pradesh) facility," Naresh Kumar Rattan, president, corporate sales and marketing, told reporters here after launching the new 26-seater Traveller vehicle.
He declined to disclose the premium van's actual seating capacity and the target buyers.
According to a research report by a broking firm, the Force Motors has allocated around Rs.500 crore for the van project.
Queried about the sales of Force One, Rattan said the company has sold around 2,000 units since its launch last October as against a target of 4,000 units.
"We are selling around 150 units of Force One per month with less than 20 dealers. We will be launching two/three variants in three/four months to expand that segment," Rattan said.
Refuting that the company is now moving away from the small goods carrying vehicle segment, he said: "The small goods carrying segment is witnessing increased competition. We will continue to be there."
He said the company hopes to sell around 3,000 units of small goods carriers this year as compared to 5,000 units sold last year.
Asked about the company's plans for its tractor division, Rattan said the sales are going up and last year around 1,600 tractors were sold.
"This year we expect to sell around 3,000 tractors. We plan to focus on six/seven states while develop upper range of tractors. We now have tractors in 27-47 HP segment."
Rattan said this year the company is planning to sell around 1,000 units of the Traveller. "Next year the target is around 4,500 units."
Force Motors is aiming a market share of 20 percent in this segment. The company commands around 50 percent market share in the 6-20-seater vehicle segment.
The company plans to increase its network by 50 dealers to 213 this year.