Hyundai Motor, Caparo to make buses in India

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Seoul, March 24: : South Korea's Hyundai Motor Co said on Monday it had agreed with UK-based Caparo Group's Indian unit to produce and sell high-end buses in India, targeting the fast-growing commercial vehicle market.

India's commercial vehicle market stood at 290,000 units last year, including 5,000 premium buses.

Hyundai, which said in February it was talking to Indian firms for a possible venture for commercial vehicles, expected the market for "luxury" buses, to be mainly used for tourism, to reach 10,000 units in 2010.

Under the agreement, Hyundai will provide parts and production technology for Aero buses while Caparo India will manufacture and sell the vehicles, Hyundai said in a statement.

Caparo India will build a plant in Chennai, near Hyundai's second plant in the country, to start production in early 2009. The companies expect Caparo's plant to produce 5,100 units by 2013.

Hyundai Motor ranked second in the Indian passenger car market in 2007, trailing Maruti Suzuki India Ltd. It aims to enter the top 10 rankings in the local commercial vehicle market by 2010.