Date 21st October, 2007

MAN FORCE TRUCKS COMMENCE EXPORT

MAN FORCE TRUCKS Pvt. Ltd., is a Joint Venture company formed by Force Motors Limited of India, and MAN Nutzfahrzeuge AG of Germany. Force Motors holds 70% of the equity of the JV company and MAN Nutzfahrzeuge AG holds 30%. This joint venture is formed to service both the domestic and the export markets. A capacity of 24,000 trucks per year has been created, at a brand new facility set up at Pithampur, near Indore, in Madhya Pradesh.

The technical collaboration with MAN, for Engines and Cabs etc. for heavy commercial vehicles, was signed in 2003. The new Plant at Pithampur has recently gone on stream and regular production has commenced. The company had accepted the challenge to achieve full localization within the first year of production, in order to bring in cost competitive products, while retaining the very modern and high technology. The high levels of localization are achieved on target. Initial supply problems with domestic component suppliers, particularly foundry items, has so far restricted volume production. There is a delay of approximately six months in reaching the initial volume targets.

The export of trucks is a high priority for both the J.V. partners. To this end, regular exports of trucks is now commenced. The first consignment is flagged off on Dussera ? the 21st of October. The first lots are destined for South Africa.T he Homologation activities etc.in several select countries including South Africa have already been successfully carried out. It is expected that during the next calendar year volume production will be established. This will be accompanied by introduction of a larger variety and range of Trucks, both in the domestic and the export markets. 

The CLA range of MAN Trucks sport the famous DO8 MAN Engine, delivering 280 Horse Power with Euro ? III Emission status. Aggregates such as Gear Boxes, Planetary Axles, Cabs and various systems - such as electronic on-board Engine and other functions management, Braking Systems, Safety features etc. meet the most exacting International standards.M AN Trucks are known the World over for 100r%eli ability. 

The initial product offerings were at the high power end of the market, with 3 models - a 49 Ton 6X4 Tractor, a 40 Ton 4x2Tractor, and a 25 Ton 6 x 4 Tipper model. The company has now expanded its product port-folio, to include several other models to serve the mainstream and volume market of multi axle trucks. During the next quarter, it is expected that fully localized, high technology products will be introduced to widen the product range to cover the major portion of the market. The present small footprint of the company in the market will thus be expanded to become a full range player. 

The company has already established 17 dealerships throughout India, and it is expected to increase the number to 31 dealerships by January 2008, to cater to the growing production and sale and to provide countrywide application sales, service and parts support. Due to high localization the spare parts prices for the trucks are competitive with local brands from day one. 

Starting from South Africa the export footprint is expected to be enlarged, to include the whole of the African Continent, the Middle East - as also key Fareastern markets, like Indonesia, Malaysia etc. The export markets of Central Asia and the CIS countries are also in sight. A full range of Trucks adapated to cater to each export market's specific requirements, is also simultanously now developed. 

The response in India to the trucks already sold in the market is enthusiastic. A large number of customers have made repeat purchases, after the profitable experience on the operation of the initially purchased trucks.