Caparo, Hyundai tie up to launch luxury buses

Caparo Vehicle Products India has announced plans to enter the luxury bus segment in India. It has signed a technical pact with Hyundai Motor Company of South Korea to set up an assembly plant in India.

“We have sites at Sriperumbudur (near the Hyundai Motor India plant), Oragadam, and Nellore in Andhra Pradesh and are talking to the State governments also. The plant is likely to come up somewhere in these locations,” said Dev Mukherji, chief executive officer – business growth, Caparo India.

The proposed facility will have an annual capacity of 1,500 luxury buses. Initially, it will be an assembly unit of CKD parts imported from South Korea. Production would be raised to 5,100 by 2013. Three variants of the Hyundai Aero bus, powered by 320hp-380hp Hyundai engines would be produced here, he said.

Under the agreement, Hyundai will provide parts and production technology for the Aero buses while Caparo India will manufacture and sell the vehicles. The buses are likely to sport both the Caparo and Hyundai badges.

The Caparo India CEO said the luxury buses would be for the domestic market and export possibilities could be explored at a later stage.

The plant is slated to go on stream in the last quarter of 2008-‘09. “The buses will have world-class technology, looks and luxury,” said Angad Paul, chairman, Caparo India, in a press release. The buses are to be fitted with powerful and efficient Euro III/IV engines, air-wide suspension and ABS systems.

Han Yang Choi, president, Hyundai Commercial Vehicles, South Korea, said it is a huge challenge for Caparo to take up the commercial vehicles business.

“I am confident that the Hyundai Aero bus will make a strong contribution to the Indian luxury bus segment. With this, Hyundai Motor will be able to showcase its strength in luxury bus manufacturing.”