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In what can be termed a landmark business deal, Force Motors and Rolls Royce Power Systems AG have announced their joint venture, ‘Force MTU Power Systems Pvt. Ltd.’ to produce engines in India, that will be supplied for both domestic and international market. The engines will be for power generation and rail underfloor applications. Force Motors has 51 per cent and Rolls-Royce Power Systems AG hold 49 per cent stake in the JV. Both companies have invested over 300 crore for the venture, that will see a shift in production of the engines from Germany to India.
Force Motors already produces engines for Mercedes-Benz and BMW range of passenger cars which are sold in Indian market. Since BMW owns Rolls-Royce, Force Motors was the natural choice when it came to locally producing engines in India.
The MTU Series 1600 engines, with 10 and 12 cylinder configurations having power out put ranging from 545bhp to 1050bhp will be made in the brand new production facility that is coming up in Chakan, Pune. The engines will cater to the heavy vehicle segment, power generation systems and railway segment internationally. Customers from Nepal, Sri Lanka and in India will get the power generators with ‘Force-MTU’ brand name, while other customers globally will get the generators with the brand name ‘MTU Onsite Energy’. All engines will carry the MTU brand name. Series production will start in the third quarter of 2019. The JV will rely upon the benefits from local production while keeping up with the quality standards of Rolls-Royce Power Systems AG.
On the new partnership with Force Motors, Andreas Schell, president and CEO of Rolls-Royce Power Systems AG said,”This Joint Venture opens new opportunities for a bright future with our Series 1600 products. In Force Motors we have found a reliable partner whose excellent production quality is proven by decades of experience in building engines for premium automotive brands. Once serial production capabilities for 1600 units have been established within the joint venture, we will have opportunities to add other applications, engines and power systems to the JV portfolio.”
Apart from manufacturing Series 1600 units, the JV will also build Series 1600 generator sets for the Indian and international markets.
Prasan Firodia, managing director of Force Motors said, “It’s a matter of great pride and honour for us that Rolls-Royce Power Systems has chosen to partner with Force Motors not only for production of engines but also for production and engineering of the whole genset system. This tie-up comes after our successful cooperation with Mercedes-Benz and BMW and will open up numerous opportunities for growth and diversification. I see exciting times ahead, since we are set to play a pivotal role in bringing to India and making in India cutting-edge, top-of-the-line engines for multiple applications.”