Hyundai Motor Ready to Sell Luxury Buses in India

Amidst of capturing the increasing opportunities of the Indian vehicle market, South Korea's Hyundai Motor Co., after hitting majorily to the car market, is now ready to pave its footprints in the India's Bus market. In a collaboration to the UK based auto parts maker, Caparo Group's Indian unit, Hyundai Motor Car is agreed to manufacture and sell high durable buses in the Indian market, in order to capture a share in one of the fastest growing India's commercial vehicle sector. Hyundai has entered into a 5 years agreement with the Caparo Group's Indian unit. Triggered by the India's commercial vehicle sector, which consists of around 2,90,000 units, having the total of 5,000 premium buses Hyundai Motor Co. is ready to enthrall the Indian automotive industry with its high end buses.

With an agreement with the Caparo Group's Indian unit, Hyundai will provide its parts and high tech technology for Aero buses and further assemblage of parts and later on sell of the buses will be completed in Caparo Group's Indian unit. To successfully implement its plans, Caparo Group will build a plant in the southern part of the India, Chennai. Sale of luxury buses are expected to get double by the 2010. To tap the unprecedented opportunities present in the Asia's fourth biggest economy, the plant is manufactured in close to the Hyunda's second Indian plant, with a production capacity of 1500 units in a year. Production is more likely to be started in early May 2009. In its initial stage of production, Hyundai is expecting to produce 5100 units in the Caparo's plant. Under the five year agreement, Hyundai will get US$4mn for technology transfer. Hyundai Motor Company has its commercial vehicle plants dissipated throughout the China, Vietnam, Indonesia, Malaysia, Iran and Russia. Sale of luxury buses are expecting to get double by the 2010. Sale of luxury buses are expecting to get double by the 2010. As per the figures released by the Society of Indian Automobile Manufacturers (SIAM), sale of buses and trucks have seen a soaring rise of 2.9% to 430,555 units during the months of April to February 2007-08.

In its first phase, company is looking out for a possible venture for tourists luxurious buses. These buses are mainly targeted to be used for tourism purposes. It is expected to reach out the number of 10,000 units in 2010. By overlooking on the surging requirements, demand for such high level buses are expecting to shoot up, as most of these buses are manufacturing by targeting the tourism markets. Indian tourism industry is booming at a great pace and travel agencies are supposed to be prime buyer of such luxury buses for their domestic and international tourists. Henceforth Hyundai is working on targeting these buses to the Indian tourism industry. Manufacturing of high level buses by Hyundai Motor Car can has been seen as comforting step as many state governments are fostering the public transportation system in throughout their urban and rural sectors.

By the end of 2007, Hyundai Motor Car stood on second rank in the Indian passenger car market. The company's future planning book includes entering into the top 10 rankings of the domestic commercial vehicle by 2010.