Force Motors Gears Up: Rs 2000 Cr Capex for Global Leap, Defence Dominance & EV Future!

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Updated on 16 Nov 2025, 07:43 am

Force Motors, a leader in India's shared mobility solutions, is strategically positioning itself for significant growth in international markets and the defence sector. Managing Director Prasan Firodia announced plans to leverage the company's strong domestic position in segments like light commercial vehicles and multi-utility vehicles, particularly its Traveller and Urbania platforms, to fuel global expansion. The company is already exporting to over 20 countries and aims to enter new markets in Latin America and Africa, targeting 20-30% of its total volume to come from exports. Force Motors is also aggressively eyeing growth in the defence segment, enhancing its Gurkha SUV and developing light strike vehicles for the Indian armed forces and export markets.

To support these ambitions, Force Motors has earmarked about ₹2,000 crore in capital expenditure (capex) for the next three years. This investment will focus on digitisation, modernising production facilities, enhancing sales infrastructure, and developing electric vehicle (EV) products. Notably, the Traveller EV ambulance is ready, and work is progressing on the electric version of Urbania. The company reported a robust second quarter with a twofold year-on-year increase in net profit to ₹350 crore and an 8% rise in revenue to ₹2,106 crore, attributing this success to a focused strategy and improved efficiencies.

Impact: This news is significantly positive for Force Motors and its investors. The strategic push into global markets and the defence sector, coupled with substantial investment in EV technology and manufacturing upgrades, lays the groundwork for future revenue growth and market share expansion. Successful execution of these plans could lead to increased profitability and a stronger market valuation. Rating: 7/10.

Difficult Terms: * **Shared mobility solutions**: Services where multiple users share the use of a single vehicle, such as public transport, taxis, or ride-sharing platforms. * **Defence segment**: The business sector dedicated to manufacturing and supplying vehicles, equipment, and services for military and national security purposes. * **Capex (Capital Expenditure)**: Funds a company spends to acquire, upgrade, and maintain its physical assets, such as property, plants, and machinery. * **Digitisation**: The process of converting information and operational processes into a digital format for better management, storage, and analysis. * **Legislative requirements / Homologation requirements**: These are the official standards, regulations, and certifications that vehicles must meet to be legally approved for sale and use in specific countries or regions. * **Light Commercial Vehicles (LCVs)**: Vehicles primarily used for business purposes to transport goods, typically smaller than trucks and larger than passenger cars. * **Multi Utility Vehicles (MUVs)**: Versatile vehicles designed to carry a larger number of passengers and/or cargo than standard cars, often featuring flexible seating arrangements. * **Bottom line numbers**: Refers to a company's net profit or earnings after all expenses, interest, and taxes have been deducted. * **Light strike vehicle**: A fast, agile, and lightly armored vehicle commonly used by military forces for reconnaissance, rapid deployment, and patrol duties. * **Hardcore off-roader**: A vehicle specifically engineered for extreme off-road conditions, featuring high ground clearance, robust suspension, and advanced four-wheel-drive systems. * **Niche segment**: A small, specialized, and distinct part of a larger market, catering to specific customer needs and preferences. * **EV (Electric Vehicle)**: A vehicle that is powered by an electric motor(s) using energy stored in rechargeable batteries.