Force Motors announces exit from tractors business

Force Motors has made the decision to exit the tractors and connected activity business by the end of the fiscal year, the company announced on Friday following a meeting of its board of directors.

In a regulatory filing, Force Motors stated that the board has resolved to discontinue the line of business related to the manufacturing and dealing of agricultural tractors and connected activities by the conclusion of the 2023-2024 financial year.

Under its product rationalisation programme, the company intends to concentrate primarily on its core segments, including 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.

Explaining the decision, Force Motors highlighted that the agricultural tractors segment accounted for a total revenue of Rs 182.53 crore for the fiscal year ended March 31, 2023, representing 3.66 per cent of the company's total revenue for the same period.

The move signifies the company's strategic shift towards focusing on core areas that align with its long-term business objectives and growth trajectory.

(With PTI inputs)