Hyundai Motors, Caparo India to make luxury buses in India

26 March 2008

Chennai:  South Korean automaker, Hyundai Motor Company, has signed a five-year agreement with Caparo India to produce and sell the famed luxury bus, Hyundai Aerobus in India, tapping the rapid-growing commercial vehicle market in the country.

Under the agreement, an assembly plant will be set up in southern India with an annual capacity of 1,500 buses. Hyundai will provide parts and production technology for the buses while Caparo India will manufacture and sell the vehicles, Hyundai said in a statement.

The facility to be set on 20 acres will employ 200 people initially. The Aerobus will come in three variants with powertrains in the 320-380 HP range.

India's commercial vehicle market stood at 290,000 units last year, including 5,000 premium buses. Sales of trucks and buses gained 2.9 per cent to 430,555 units between April and February, said the Society of Indian Automobile Manufacturers.

Hyundai is in talks with Indian firms for a possible venture for commercial vehicles, to market for higher-end buses, to be mainly used for tourism. The company expects to reach 10,000 units in 2010.

Caparo is evaluating locations such as Sriperambadur, Oragadam and Nellore in the south to set up the plant and expects to fix ona location in three months.