Volvo Bus Corporation and the Indian company Jaico Automobiles have reached an agreement to start a joint company in India for production of bus bodies based on Volvo Buses’ body technology.
Volvo Buses will be the majority owner with a 70% stake in the new company, which plans to build a new plant with a capacity of 1,000 bus bodies per year.
The bus bodies will primarily be used for Volvo buses and coaches in the Indian market. The new company will also investigate possibilities to export buses to other Volvo markets in Africa, the Middle East and Southeast Asia.
Volvo Buses and Jaico Automobiles have initiated the process that will result in a decision regarding where the new plant will be located. This effort involves contacts with various state governments in India.
When ready, the new plant will be one of the most modern body plants in South Asia, with all the characteristic of a Volvo plant when it comes to quality, safety and care for the environment.