The Hindu Business Line : Swaraj Mazda to sell Isuzu buses

Swaraj Mazda on Monday said that it has signed a technical assistance agreement with Japanese automotive major Isuzu. Swaraj Mazda Ltd (SML) is a joint venture between Japan's Sumitomo Corporation and Punjab Tractors.

Isuzu Motors said, under the agreement, it would enter the Indian market through the local assembly and sales collaboration contract for medium duty buses with Swaraj Mazda.

``The buses will be assembled by Swaraj and sold in India under the Isuzu brand through about 130 exclusive dealers of Swaraj,'' the company said.

Isuzu said the delivery of medium duty bus completely knocked down (CKD) kits to Swaraj would start from 2007.

The company said it planned to sell about 100 units in 2007, which is expected to expand to 1,000 units in 2009.

Although Swaraj still retains ``Mazda'' in its corporate name, its capital relationship with Mazda was dissolved with the latter withdrawing from development and production of Mazda trucks and bus with Swaraj in August last year.

The Sumitomo Corporation is the largest shareholder in SML with 41 per cent stake, while Punjab Tractors holds 14 per cent. SML's shares closed at Rs 236.70, up 5 per cent from yesterday's closing at the BSE.

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