Volvo plans JV for bus body production in India

Bangalore, Sep 27 (UNI) Volvo Bus Corporation and Jaico Automobiles (Azad Group) have reached an agreement to start a joint company in India for production of bus bodies based on Volvo Bus' body technology.

Volvo Bus would hold a majority stake of 70 per cent in the new company, which planned to build a new plant with a capacity of 1,000 bus bodies per year, Volvo said in a release here today.

The release said the new plant would be one of the most modern body plant in South Asia with all the characteristics of a Volvo plant, whose location would be identified soon after discussions with various State Governments.

The bus bodies would primarily be used for Volvo buses and coaches in the Indian market. The new company would also investigate possibilities to export buses to other Volvo markets in Africa, the Middle East and South East Asia, the release said.

Volvo Bus was the market leader in India for luxury, AC express coaches. The company had also entered the city bus market in India with a modern low-floor bus with air-conditioning. The bodies for Volvo's Indian coaches and buses were manufactured by Jaico Automobiles (Azad Group) at a plant here.

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