Tata Motors and Brazil's Marcopolo
entered into an agreement on 5 May 2006 to form a joint venture that will
produce fully-built buses and coaches in
India.
The 51:49 JV, yet unnamed, will set up a
facility with an investment of Rs.150-200 crore. Tata Motors will benefit from Marcopolo's technology for mass production of buses along with its expertise in
the mass rapid transport (MRT) systems.
The company is expected to manufacture
7,000 buses during the first year of its operations. It will produce 16 to 54 seater standard buses, 18 to 45
seater luxury buses, luxury coaches and low-floor city buses.