JOINS HANDS: Tata Motors Chairman, Ratan Tata (right), and Marcopolo (Brazil) Chairman, Paulo Bellini, at the signing of the joint venture agreement between the two companies in Mumbai on Friday.

MUMBAI: Tata Motors and Marcopolo, the Brazil-based global leader in body-building for buses and coaches, have announced a joint venture company in India to make and assemble fully-built buses and coaches.

The joint venture, in which Tata Motors will have a 51 per cent equity and Marcopolo 49 per cent, will set up a new manufacturing facility. The total investment is to the tune of Rs. 150-200 crore.

It will go on stream in a year's time and will have an initial capacity of 7,000 units annually, which will be increased in a modular manner. The joint venture will 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 joint will also explore emerging opportunities in the Bus Rapid Transit System.

The joint venture will take the help with technology and expertise in chassis and aggregates from Tata Motors, and expertise and knowhow in processes and systems for bodybuilding and bus body design from Marcopolo.

Both companies will actively participate in the management. The buses will conform to international standards in quality and safety and will be marketed in India and also in all Tata Motors focussed markets globally.

Ratan Tata, Chairman, Tata Motors, said, "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 will enable Tata Motors to successfully address the growing demand in India, as well as relevant markets abroad.''

Earlier, Tata Motors acquired the Daewoo Commercial Vehicles Company, Korea for trucks in 2004 and in 2005 it acquired a 21 per cent stake in Hispano Carrocera, the Spanish bus and Coach manufacturer. The joint venture with Hispano is for higher-end vehicles, while with Marcopolo, it will make medium range vehicles.

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