Pune-based automotive company Force Motors and Germany's commercial vehicle company Neoman Bus Group has agreed to set up a joint venture in India for manufacturing next-generation luxury buses and low-floor city buses. |
The initial investment is estimated at ¤100 million (Rs 530 crore), according to Force Motors.chairman and managing director Abhay Firodia. |
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Force Motors will hold 70 per cent in the JV with Neoman owing the rest. The JV, for which a name is yet to be finalised, aims to produce 4,000 buses a year, each costing Rs 40 lakh. The deal was signed today by Firodia and MAN Nutzfahrzeuge CEO Anton Weinmann. |
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Firodia said the JV would export the vehicles to Asian and African countries. "It is an opportune alliance -""MAN has the technology while we have the manufacturing capability. They will market the vehicles that we will produce," he added. |
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The two companies had earlier established a separate joint venture "" Man-Force Trucks Ltd "" for manufacturing heavy trucks at Pune. That plant will start production next week and aims to churn out 24,000 vehicles a year. |
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"Nearly half of this production will be exported, while the remaining is meant for the Indian market," Firodia said. |
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