Mumbai: Pune-based Force Motors Ltd has signed a technology licence agreement with Daimler AG for a multi-purpose vehicle (MPV), the company said in a statement.
The technology will facilitate the entry of Force Motors into the passenger and goods vehicles segment, it said.
The deal was signed on 25 July.
Daimler has earlier licensed the technology for a 2.2-litre engine to Force Motors for powering its Traveller range of light commercial vehicles.
The company has used upgraded versions of this engine in its sports utility vehicle, Force One, which is to be introduced shortly. Other variants of the engine will be adapted for its MPV.
Force Motors also said it is scouting for a new location in Pithampur, Madhya Pradesh, to set up a new plant for producing the MPV, likely to commence by the end of 2012. The factory will have an initial capacity to make 24,000 vehicles a year.