India's Force Motors (formerly Bajaj Tempo) has signed an agreement with MAN AG commercial vehicles unit MAN Nutzfahrzeuge AG to produce heavy trucks in India. Force Motors will hold 70 % of the joint venture. The vehicles will be produced in Force Motors' Pithampur plant in Madhya Pradesh, India.

The heavy commercial vehicles produced by MAN Force Trucks Pvt Ltd will have almost full local content by the end of 2006. When running at full capacity, the plant can make 24000 vehicles annually.

MAN AG is a major player in the international havy commercial vehicles market. Half of the vehicles produced at the Pithampur plant will be exported, possibly to Asian and African countries. Abroad, the vehicles will be sold as MAN trucks.

Amonf the vehicles to come out of MAN Force Trucks plant are long haul trucks, semi trailer tractors and tippers and some special purpose vehicles. The MAN D08 engines use din the trucks meet Euro 3 standards in emissions.

Abhay Firodia, MD, Force Motors said that a common rail engine for the company's bread and butter Tempo and Trax vehicles will be ready by 2006-end.

Hakan Samuelsson, chairman of MAN said that a low cost production base such as India is an important strategic step for MAN. The Neoman Bus group of MAN is expected to enter into a separate JV agreement with Force Motors to step into the Indian bus market. Volvo is already in the Indian auto market with its long haul buses, city buses in bangalore and heavy commercial trucks.