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Tata to set up the worlds largest fully-built bus plant Print E-mail
Written by Arjun   
Monday, 06 August 2007
 NEW DELHI : Tata Motors is planning to set up a fully-built bus plant, most probably in Southern India. This plant, once it comes up, will be the largest in the world. The company is currently scouting for a location in southern India, according to a report published by the Economic Times. The proposed facility is likely to come up at Karnataka or Goa in 2008.

 The scaleable facility will complement the current bus-making capacity of Tata Motors.  With Tata's joint venture with Brazil-based Marcopolo, the company will have an initial annual capacity of 7,000 fully-built buses and luxury coaches. The joint-venture controlled by Tata Motors will entail an initial investment of Rs 200 crore. Marcopolo is the largest mass manufacturer of fully-built buses in the world.

 In the second phase of expansion Hispano Carrocera of Spain will enter the business — where Tata Motors will hold 21% stake with an option to acquire 100% in future. Hispano Carrocera is Europe’s largest super-luxury bus manufacturing company. Tata Motors will use Hispano Carrocera’s expertise to manufacture ultra-luxury buses targeting Europe, the US and other developed markets.

 "This strategic alliance (with Marcopolo and Hispano Carrocera) will give us access to their design and technological capabilities to fully tap the growing potential of this segment in domestic and export markets,” said the Tata Motors spokesperson.

 Ravi Kant, managing director of Tata Motors said, “We are in the process of setting up an integrated bus-making facility, which will perhaps be the largest of its kind in the world. The proposed plant will come up somewhere in south India shortly.”

 Tata Motors, which sold around 28,000 units in the last fiscal year, has a 49% marketshare and is a leader in the 54,000-unit domestic bus market. Tata is chasing a sales target of 50,000-60,000 passenger carriers in the next few years to emerge the largest player in terms of units, ahead of leading bus manufacturers like DailmerChrysler and Volvo, says the report.
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