Volvo-Jaico JV to focus on exports

Volvo Bus Body Technologies India, a joint venture between Volvo and Jaico Automobile, is planning to become an export hub for emerging countries.

The company may start commercial production of fully built-buses in January 2008 and plans are afoot to cater to the South Asia, West Asia and African markets.

Presently, the company manufactures bus chassis in Bangalore, and markets them in India and exports to Bangladesh, Pakistan and Sri Lanka.

The company, in which Volvo holds 70 per cent stake, was formed in September 2006 to build bus bodies, based on Volvo's body technology, to meet the growing demand in India and neighbouring markets.

The production unit has been set up adjacent to Volvo's truck making facility at Hoskote, about 35 kms from Bangalore. The plant has a capacity to produce 500 buses. The capacity will be scaled up to produce 1,000 buses per annum in three years.

"In 2006, we sold 300 buses in India, and we target 25 per cent growth in the current year and the next. Once we reach the full capacity of 1,000 buses by 2009-end, we will sell 50 per cent of the production to South Asia and West Asian markets," Akash Passey, director, Volvo Bus Corporation told Business Standard.

"We have just set up the new assembly plant in Bangalore at an investment of Rs 100 crore for building bus bodies. We will increase our sales in the domestic market and increase exports to neighbouring markets. In the second phase, spanning the next three years, we will export these buses to other emerging markets," he added.

Each fully built bus will be priced in the range of Rs 70-80 lakh.

The company also produces modern low-floor bus air-conditioned for the Indian market.

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ROAD AHEAD

Volvo holds 70 per cent in the JV which was formed in September 2006 to build bus bodies based on Volvo's body technology to meet the growing demand in India and neighbouring markets

The company has also entered the city bus market in India with a modern low-floor bus with air-conditioning. Over the last six years, Volvo has sold 1,500 buses of all types in India