Volvo floats Volvo Bus BodyTechnologies

* Invests Rs 80 crores in the new bus body facility at Hosakote, Bangalore

Volvo Bus Corporation today announced the beginning of a new era for its Indian operations with the setting up of Volvo Bus BodyTechnologies India Pvt. Ltd. (VBT), a joint venture between Volvo Bus Corporation and Jaico Automobiles part of Azad Group.

The new company, headquartered in Bangalore, will be the new face of Volvo Buses in India and will undertake selling of complete Volvo bus unit including bus-body manufacturing at its new facility. Set up with an initial investment of Rs 80 crores VBT will start its fully operational bus body plant in Hosakote, Bangalore by end of January 2008.

This new entity will provide Volvo Buses greater flexibility in introducing new product variants in the future besides catering to export markets.

With Volvo Bus Corporation as the majority stake holder, the new company will boast of one of the most modern plants in South Asia with a manufacturing capacity of 1000 buses. The company will manufacture products for the Indian market along with exports to markets like Africa, Middle East and Southeast Asia. The new plant is slated to roll out a new version of Volvo 9400 Intercity buses in the first quarter of 2008.

Elaborating the company's plans, Mr. Akash Passey, newly appointed Managing Director, Volvo Bus BodyTechnologies said, "With the luxury bus segment growing at 20% annually, India holds a pivotal role in Volvo Buses' growth plans. The setting up of Volvo Bus BodyTechnologies is a milestone in the company's innings in India and will help us further strengthen our presence in the market. We are confident that the manufacturing of the Volvo buses' body being undertaken by the company directly will set new benchmarks in the high performance CV segment and reaffirm our consumers' confidence in our products."

Volvo Bus Corporation is one of the largest manufacturers of large buses and coaches. The range comprises complete vehicles, chassis, bus bodies, transport system solutions for metropolitan traffic, leasing, financing and service contract maintenance. Volvo Bus Corporation is part of the Volvo Group, one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. The Group also provides complete solutions for financing and service.