Force Motors to launch SUVs later this year

The plan is to sell 4,000 SUVs in the first year of operations, told Managing Director Prasan Firodia. "Our core business remains commercial vehicles, that is our bread and butter. This is another vertical being created as the market is growing," Firodia said.

He sees long term potential in the segment though economic factors are not showing very positive indications at present. "Growth in the automotive industry is going to be tremendous. We are not looking at this segment for short-term gains," Firodia said.

India's auto sales in 2010 had grown at a breakneck pace of 30 percent, but are showing signs of a slowdown as consistently rising interest rates are forcing the middle class to tighten their purse strings.

Car sales rose 7 percent in May, their slowest pace in two years, while sales of commercial vehicles such as trucks and buses rose 16.16 percent from a year earlier. Force Motors, known for its light commercial vehicles brand Tempo, Matador and Traveller, has already invested about 1.5 billion rupees, over the last 12-18 months, in its plant to manufacture SUVs in Pithampur, Madhya Pradesh.