Caparo India’s technical agreement with Hyundai Motor Co to manufacture luxury buses has not made any headway. It is learnt that Caparo has suspended the project for which the deal was signed in April this year. The ongoing global economic crisis has forced the two companies to stall the project for a while. No details have been given out as to when the venture will start moving forward again. Caparo officials are optimistic that the project will revive in around two or three quarters.
According to the agreement, Hyundai Motor was supposed to provide technology and major components (including engines) to Caparo India and further manufacture and sell the luxury Aero buses. The proposed facility (earlier expected to be on a 20-acre site in Southern India), was supposed to have an annual capacity of 1,500 luxury buses.