Now this company will not manufacture tractors, know why it had to take this difficult decision
Force Motors of the auto sector has decided to close its agricultural tractor and related business. The company said that it will completely close the tractor business on March 31 (Sunday). The company says that it is closing down the tractor and related business as a well-thought-out strategy. After this the company will focus on its core segment business.
The company said that under the product rationalization program, it will focus only on core segments like Share Mobility Transportation, Last Mile Mobility, Goods and Transportation. This company also works in manufacturing premium luxury OEM and special vehicles used in civil and defense. But, now the company is completely exiting its tractor business.
How much does the company earn from which business?
Force Motors said in its exchange filing that its company is known for manufacturing multi-seater passenger vehicles and Gurkha SUV. Apart from this, it also makes engines for luxury companies like BMW and Mercedes in India. According to the annual report for the business year 2023, about 48% of Force Motors’ income comes from vehicle sales. Whereas, 36% share comes from contract engine manufacturing.
The total income of this company from tractor sales till 31 March 2024 was ₹ 182.53 crore, which is only about 3.6% of the total income of the company. The value of total assets related to tractor business is around ₹ 12.29 crore.
Pressure on tractor sales figures
This decision by Force Motors to close the tractor business has come at a time when tractor sales figures are under pressure. Mahinda & Mahindra, the country’s largest tractor manufacturing company, had last month cut its tractor sales forecast in the domestic market in the financial year 2024.
Explaining the reason behind this, the company said that due to the weakness in the rural economy at present, there is pressure on tractor sales figures.
