The Hindu Business Line : Tata Motors, Brazil co form joint venture

Luxury drive
The joint venture would be investing Rs 150-200 crore to set up a factory to manufacture fully built buses.
It is expected to explore the emerging opportunities in Bus Rapid Transit System.

Mumbai , May 5

Tata Motors has set up a joint venture company with Brazil-based Marcopolo to manufacture buses and coaches for India as well as overseas markets.

The auto major's share in the joint venture would be 51 per cent while that of Marcopolo 49 per cent.

The joint venture would be investing Rs 150-200 crore to set up a factory to manufacture fully built buses.

The capacity of this plant would be 7,000 buses in the first year and would be scaled up thereafter.

The plant to be located in India would go on stream in a year's time, and produce a variety of buses including 16 to 54-seater standard buses, 18 and 45-seater luxury buses, luxury coaches and low-floor city buses.

"The buses will conform to international standards in quality and safety, and will be marketed not only in India but also in all Tata Motors focussed markets globally,'' the company said in a news release.

The company did not say where the factory would be set up.

The joint venture is also expected to explore the emerging opportunities in Bus Rapid Transit System.

Joint venture's role

It will take help with technology and expertise in chassis and aggregates from Tata Motors, and expertise and know-how in processes and systems for bodybuilding and bus body design from Marcopolo. Both the companies will actively participate in the management.

"The rapidly expanding and improving road network, connecting cities and also rural areas, is expected to substantially grow passenger transport.

The joint venture with Marcopolo, which is one of the largest bus body builders, will enable Tata Motors to successfully address the growing demand in India, as well as relevant markets abroad," the company said quoting its Chairman, Mr Ratan N. Tata.

Marcopolo's presence

"Marcopolo's buses and coaches have a strong presence in Latin America and overseas markets. The joint venture with Tata Motors will help us extend our presence in the high-potential markets of India and also other mutually agreed countries, which we can jointly develop," the news release said quoting Mr Paulo Bellini, Chairman, Marcopolo.

Tata Motors had acquired a 21 per cent stake in Hispano Carrocera, the Spanish bus and coach manufacturer.

"With this acquisition, Tata Motors would have the full spectrum of buses,'' a company official said.

Shares of Tata Motors ended unchanged at Rs 968 in Friday's trade on BSE.

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