Force Motors Announces ₹3,000 Crore Investment to Scale Van Production and EV Development

Pune-based automaker Force Motors is investing ₹3,000 crore over the next two-and-a-half to three years to expand its Traveller and Urbania van lines, develop electric and hybrid vehicles, and upgrade manufacturing infrastructure. The company plans to fund the entire capital expenditure through internal accruals while scaling production capacity to 80,000 vehicles annually.

Pune-based automaker Force Motors is committing ₹3,000 crore over the next two-and-a-half to three years to expand its core van business, develop electric and hybrid vehicles, and upgrade its manufacturing and engineering capabilities. The debt-free company plans to fund the entire investment through internal accruals.

The capital expenditure programme aims to increase the company's installed production capacity from current levels to around 65,000 vehicles next year, eventually scaling up to a long-term target of 80,000 units annually. According to Managing Director Prasan Firodia, the funds will be directed toward EV platforms, hybrids, new variants, engineering infrastructure, paint-shop modernisation, and digital transformation initiatives under Project DigiForce.

The investment follows a strong recovery in domestic sales, driven by the rollout of the upgraded Traveller N. Vahan data indicates that Force Motors' retail registrations rose 48.9 per cent year-on-year to 11,214 vehicles during the September quarter, helping offset earlier fiscal weakness associated with production and supplier transitions.

The company is also experiencing steady demand for its premium Urbania van range. Volumes are approaching 1,000 units a month, bolstered by the launch of the Urbania Deluxe earlier this year and demand from corporate employee transportation, tourism, and hospitality sectors.

However, international business continues to face headwinds. Overseas shipments fell 34.8 per cent in the September quarter due to disruptions in key export markets such as West Asia. To counter this, Force Motors is working to expand its global footprint through assembly operations in Kenya, distribution partnerships across African markets, and exports to Latin America.

Electrification remains a primary focus for the automaker. Force Motors is currently developing hybrid powertrains for its 10 to 25-seater vehicle range, along with plans to introduce electric ambulances and a Traveller EV line-up. A timeline for an electric Urbania has not yet been announced.

Financially, Force Motors reported a consolidated revenue of ₹2,924.7 crore for the September quarter, marking a 40.5 per cent increase year-on-year. Net profit stood at ₹293.9 crore, down 16.2 per cent due to a high base effect that included a one-time tax benefit in the previous year.

"Force Motors' decision to fund a ₹3,000 crore capital expenditure entirely through internal accruals demonstrates strong balance sheet health and disciplined financial management. By channeling resources into EV platforms, hybrids, and manufacturing upgrades while scaling domestic demand for the Traveller and Urbania ranges, the company is effectively balancing near-term growth with long-term technological transition. Their strategy to expand international assembly in Africa and Latin America also offers a practical buffer against regional export headwinds." — Dr. Shishir Gupta, Founder & CEO, StartupLanes