Mumbai: Force Motors Ltd Wednesday opened a new plant at Chakan near Pune that will make engines and axles for Mercedes-Benz cars and SUVs in India.

The 130,000 sq. ft facility with eight lines can produce up to 14 engine variants, Force Motors said in a statement. It has an annual capacity of 20,000 engines and 20,000 front and rear axles, and can be expanded further. The company has invested 100 crore in setting up the plant as part of a plan to invest 700 crore over the next two years, across its value chain for multiple products and business verticals.

The Pune-based firm has been supplying engines to Mercedes since 1997. Till date, it has supplied over 60,000 engines and over 50,000 axles.

This project was conceptualized in June 2015 and the first engines here were made in February 2016. “The inauguration of this plant marks a significant step in our 45-year-long association with Mercedes Benz," said Force Motors managing director Prasan Firodia.

Force Motors ended at 2932.80 on BSE, down 0.53% from its previous close while India’s benchmark Sensex index fell 0.18% to close at 26765.65 points.