Hyundai to sell buses in India
Hyundai Motor Co, South Korea's largest automaker, plans to start selling buses in India from next year as economic growth boosts demand.
Hyundai signed an agreement with London-based Caparo Group yesterday to provide parts and technology for Aero buses, the Seoul-based automaker said in an e-mailed statement.
Caparo will build a plant in Chennai in southern India with a capacity to produce 1,500 units annually, it said without detailing investments.
Expansion in the world's fastest-growing major economy after China has spurred Daimler AG, Navistar International Corp and Nissan Motor Co to set up commercial vehicle ventures in India in the past two years. Hyundai is already the second-largest carmaker in India.
Hyundai will receive $4 million for technology transfer under the five-year agreement, according to the statement.
Production is expected to begin in early 2009 and the venture aims to produce 5,100 units by 2013.
India's commercial vehicle market stood at 290,000 units last year including 5,000 luxury buses, according to the company.
Sales of high-end buses are expected to double by 2010, it said.
Sales of trucks and buses gained 2.9 percent to 430,555 units between April and February, according to the Society of Indian Automobile Manufacturers.
Hyundai operates overseas factories in China, India, Turkey and the United States.
The South Korean carmaker said on Jan 24 it aims to lift sales from its Indian factory by 62 percent to 530,000 units this year.
The Caparo Group has more than 40 companies operating in countries, including India, Canada and Spain, according to its website.
Its businesses are mainly in the manufacture of steel, automotive and general engineering products, the company said.
Agencies
(China Daily 03/25/2008 page17)