Swaraj Mazda to sell Isuzu buses in India

Japanese commercial vehicle major Isuzu is entering the Indian commercial vehicle market through a technical agreement with Swaraj Mazda, the joint venture between Japan's Sumitomo Corp and Punjab Tractors.

According to an official release issued by Swaraj Mazda to the BSE today, the company signed the agreement on June 30.

Isuzu Motors would enter the Indian market through the local assembly and sales collaboration contract for medium duty buses with Swaraj Mazda.

"The buses will be assembled by Swaraj and sold in India under the Isuzu brand through about 130 exclusive dealers of Swaraj," an Isuzu release said.

The delivery of medium duty bus completely knocked down (CKD) kits to Swaraj would start from 2007. Isuzu plans to sell about 100 units in 2007, which is expected to expand to 1,000 units in 2009.

"Isuzu will study the development of this business, with the possibility of future local production of light duty and medium duty trucks," the Isuzu release said.