Man AG, Europe's third-largest truck maker, in
joint venture with Force Motors (formerly Bajaj Tempo) is
planning a new facility at Pithampur in Dhar district in Madhya
Pradesh.
The new facility which will entail an
investment of Rs.500 crore, which will spread
over the next three years, will commence its production from the first quarter
of 2006. It will produce engines, cabs and vehicle
assemblies and has a production capacity of 24,000 units per annum across all
the products.
The company has also earmarked an investment of
Rs.700 crore for expansion purposes. Force Motors will be having a 70 per cent stake
and MAN will take a 30 per cent stake in the expansion project that would begin
producing vehicles in the fourth quarter of 2006.
MAN plans to sell 24,000 Indian-produced vehicles annually by 2008.