Force Motors Announced to Shut Agricultural Tractor Business from Mar 31, 2024

According to Force Motors, in the fiscal year 2023, the segment of agricultural tractors only accounted for 3.66 percent of the company's total revenue.

With effect from March 31, 2024, which is the end of the country's fiscal year 23–2024, Force Motors, a well-known brand in the automotive industry, has announced the closure of its agricultural tractor business and related operations.

Concentration Shift to Core Segments

Force Motors' comprehensive product rationalisation strategy is in line with the decision to close the agricultural tractors division. The Pune-based company intends to optimise its operations and concentrate its resources on supporting its core business segments: last-mile mobility solutions, shared mobility transportation, and the creation of customised vehicles for both civilian and military uses. Force Tractor aims to maximise operational effectiveness and strengthen its competitive advantage in the changing automotive market by focusing on these areas.

Financial Effects and Industry Consequences

Force Motors revealed in a media report that in the fiscal year 2023, the segment of agricultural tractors accounted for a mere 3.66 percent of the company's total revenue. The closure of this segment represents a strategic realignment towards profitability and long-term sustainability, even though it may not have a significant impact on revenue.

There will likely be effects on the entire industry from Force Tractor’s decision to leave the agricultural tractor market. When a significant player leaves, rivals are ready to take advantage of the space that opens up. It is anticipated that this development will increase competition among current market participants and open the door for the release of new, reasonably priced, and cutting-edge tractor models.

About 48% of Force tractor revenue comes from sales of vehicles. The company is well-known for producing multi-seater passenger cars and is highly regarded for providing engines to brands like Mercedes-Benz and BMW in India. The company's most recent annual report states that approximately 36% of its total revenue comes from the manufacture of contract engines.

Tractor Junction also Offer a Monthly Subscription of Tractor Sales (Wholesale, Retail, Statewise, Districtwise, HPwise) Report. Please Contact us for the detailed report.

Subscribe our Telegram Channel for Industry Updates- https://t.me/TJUNC
Follow us for Latest Tractor Industry Updates-
LinkedIn - https://bit.ly/TJLinkedIN
Facebook - https://bit.ly/TJFacebok