Force Motors bets big on hybrids, exports with Rs 3,000 crore outlay

Mumbai: Force Motors plans to spend more than ₹3,000 crore in capital expenditure over the next two and a half years to expand its product portfolio and develop hybrid powertrains, among other activities, said Prasan Firodia, managing director.

He said the fresh investments are aimed at creating additional capacity on expectations of a boost in exports in the coming years.

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“We are investing across creating new variants, capacity enhancement, future hybrid drivetrains, and legislation compliances across the value chain," Firodia told ET. The outlay includes a new paint shop, a ₹150-crore digitisation programme, and automation across shop floors.

The expansion will be funded entirely through internal accruals, said Firodia.

Force Motors ended FY26 with zero debt, revenue of ₹9,000 crore, up from ₹8,000 crore, and profit before tax of about ₹1,600 crore.

Supply chain disruptions, worker shortages at Tier 1 and 2 suppliers, election-related labour absenteeism, and rising logistics costs crimped monthly output to around 3,000 units against a run rate of 4,000, creating a backlog of 1,500-2,000 units. "Demand is very strong,” said Firodia. “We are not able to supply adequately.”

Firodia said the Urbania multi-utility vehicle, positioned in a higher segment, has been a bright spot, averaging 700 units per month, which the company is aiming to grow to 1,000 units.

Force Motors has started exporting the Urbania to Latin America, Gulf, and selects markets in Africa, while the Traveller N commercial minibus is being readied for emerging markets.

Meanwhile, the company’s joint venture with Rolls-Royce, in which Force Motors holds a 51% stake, is adding to the revenue mix. The Pune facility manufactures V12 diesel and gas engines for global supply under the Rolls Royce brand. "Those engines are produced in India for worldwide requirement," Firodia said.

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On electric vehicles, Force Motors has developed fully electric versions of the Traveller and Traveller ambulance. However, commercial traction has been limited due to the absence of government incentives.

"The vehicles are fully ready,” he said. “There is no point launching if there is no demand.”