Force Motors will set up an engine manufacturing facility at Chengelpet, Tamil Nadu, the Pune-based company has informed the Bombay Stock Exchange. This follows a meeting of its board of directors held on April 29 which approved plans for this facility, subject to receiving all necessary approvals.
Force Motors to assemble engines for BMW
The plant, which will also have a testing facility, is being set up for a new OEM customer. Though there’s no official comment from Force Motors on who this customer might be, we learn from a reliable source that it will utilise the facility to assemble engines for BMW, which assembles vehicles in Chennai. A BMW spokesperson, when contacted, said that the company does not comment on speculation.
Force Motors’ new plant is expected to start operations in early 2015 and the company will invest Rs. 100 crore in the project.
Force Motors already has a pact with another luxury carmaker, Mercedes-Benz, to assemble engines which it does at its facility in Pune.