Force Motors to exit tractor business by fiscal year end

Force Motors exit: Force Motors Ltd announced on Friday its decision to exit the tractors and connected activity business by the end of the fiscal year. The company's board of directors, in a meeting on Friday, decided to cease the line of business related to the manufacture and dealing of agricultural tractors and connected activities starting from the close of the financial year 2023-2024, as per a regulatory filing by Force Motors.

In a statement, Force Motors explained that this decision is part of its product rationalisation programme, aiming to focus primarily on core segments such as shared mobility transportation, last-mile mobility, goods transportation, manufacturing high-technology critical aggregates for premium luxury OEMs, and creating special vehicles for civil and defence applications.

The company stated, "A decision has been taken to exit the tractor business from the product portfolio of the company." Sales of agricultural tractors contributed Rs 182.53 crore to the total revenue for the year ended March 31, 2023, accounting for 3.66 per cent of the company's total revenue for the financial year.

Force Motors' move to exit the tractor business aligns with its strategic objective to concentrate on core segments and enhance its focus on high-tech and specialised vehicle manufacturing.

(with PTI inputs)