SEOUL, South Korea (AP) -- South Korea's Hyundai Motor Co. said Monday it will supply 5,100 luxury bus assembly kits to an Indian auto parts maker, marking its entry into the country's rapidly growing market for premium buses.
Hyundai cited increasing demand for luxury tour buses as India builds new highways and travel demand increases due to a growing middle class. With its high-quality Aero bus model, Hyundai will compete with local makers such as Tata and Ashok Leyland, Hyundai said.
Under a five-year pact Hyundai and Caparo India signed Monday in Chennai, the South Korean carmaker will also provide parts and production technology to the Indian company to help it locally produce 5,100 buses between 2009 and 2013.
In 2007, India's commercial vehicle market totaled 290,000 vehicles, including 5,000 premium buses, Hyundai said.
Hyundai projects that luxury bus demand in India will double to 10,000 vehicles by 2010, the statement said.
