India's Force Motors to shut down its agricultural tractors business

Force Motors

29/03/2024 11:11

BENGALURU, March 29 (Reuters) - India's Force Motors
 FORC.NS  said on Friday it will close its agricultural tractors
business and related activities from March 31.
    The closure of business is part of the company's product
rationalisation programme under which it will focus on its core
segments such as shared mobility transportation, last mile
mobility and the creation of special vehicles for civil and
defence applications, the company added.
    In financial year 2023, the sale of agricultural tractors
accounted for 3.66% of the company's total revenue, Force Motors
said. 
    The company, which is known for its multi-seater passenger
vehicles and also makes engines for BMW  BMWG.DE  and Mercedes
 MBGn.DE  cars in India, earns about 48% of its revenue from
vehicle sales, while about 36% revenue comes from contract
engine manufacturing, according to its last annual report.   
    Force Motors reported a profit for the fourth-straight
quarter in the October-December period as a pickup in
post-pandemic economic activity helped the Maharashtra-based
company turn profitable.

 (Reporting by Ashish Chandra in Bengaluru; Editing by Sohini
Goswami)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))