Force Motors to restart Man Trucks operations

Force Motors, the maker of light and heavy commercial vehicles, has entered into an agreement to acquire manufacturing plant of the German automaker Volkswagen Group's MAN Trucks.

Earlier, Volkswagen had announced the closure of MAN Trucks' manufacture, sales and exports operations in India. Volkswagen is looking forward to restructure its India operations so that it can concentrate on premium segment. The group's Indian arm would only engage in R&D to support its global projects.

MAN Trucks' plant based at Pithampur, MP where the company manufactures tippers, haulage as well as special application trucks, registering a sale of nearly 25,000 trucks since it kicked-off India operations in 2006. MAN Trucks would sell and transfer the property including certain movable and immovable assets, the deal might take place by October end.

The stock of Force Motors is trading marginally down with 0.3 per cent loss at 2548 levels at 12:14 hours. The stock is seen consolidating at lower levels hitting almost 2335, after breaching its support at 2801. After hitting 4810 on April 7, the stock witnessed lower tops and lower bottoms. The stock is trading below its major EMAs of 50, 100 and 200. Volumes were poor and oscillators below 40 suggest lack of momentum.