Chandigarh: Having announced its tie-up with Japan''s Isuzu Motors for manufacturing buses, Swaraj Mazda has now unveiled plans to launch trucks next year.

According to Yash Mahajan, managing director, Swaraj Mazda, the company will come out with trucks as well, but will presently focus on chassis for bus applications for the upper end segment.

The first phase will seethe company emphasise its presence in the ultra-luxury buses segment, while in second phase it would include economy class buses in its manufacturing line-up. The third phase will see it make ordinary buses.

According to Mahajan, the company has received expressions of interest from about 80 customers across the country for its ultra-luxury buses, which will have a seating capacity of 40. The company plans to manufacture 100 buses this year.

Isuzu has partnered with Swaraj Mazda, and the venture will see an infusion of Rs300 crore for the setting up of two manufacturing units in Punjab. The first will produce Isuzu vehicles, and will have a capacity of 12,000 units per annum, while the second plant will manufacture bus bodies with a capacity of 7,000 units per annum.

The company plans to borrow Rs180 crore from banks, and raise Rs120 crore through a rights issue. Under the arrangement, Isuzu would supply engines and transmissions for this project, while 45 per cent of the components would be sourced locally.