Force Motors forms JV with Rolls-Royce Power Systems

An invest of around Rs 300 crore will be made in the first phase of this new joint venture.

Home-grown automotive manufacturer Force Motors has formed a new joint venture (JV) with Rolls-Royce Power Systems, also called MTU. The new company formed is christened as Force MTU Power Systems.

Pune-based Force Motors will handle the production and supply of MTU’s high powered MTU 1600 series diesel engines that will cater to the latter’s parent, BMW Group’s global requirements. These engines are used for power generation and rail underfloor applicatications.

BMW has decided to relocate the MTU 1600 series engines and power generator manufacturing unit from Germany due to cost reasons. India will now serve the its global manufacturing hub for this series of engines via this JV. According to the agreement, Force Motors will hold 51 per cent stake in the joint venture, while Rolls-Royce Power Systems will own 49 per cent.

On the JV, Prasan Firodia, Managing Director of Force Motors said, "It's a matter of great pride and honour for us that Rolls-Royce Power Systems has chosen to partner with Force Motors not only for the production of engines but also for production and engineering of the whole genset system." Further, he also added, "I see exciting times ahead, since we are set to play a pivotal role in bringing to India and making in India cutting-edge, top-of-the-line engines for multiple applications".

The MTU 1600 engines will be manufactured at a new manufacturing facility which is being set up in Chakan, near Pune. The construction of this new plant will commence from this month and the facility is expected to be functional by Q3 2019.