German commercial vehicle manufacturer MAN Nutzfahrzeuge Group plans to set up manufacturing facilities for trucks and buses in joint venture with India's Force Motors Ltd at an estimated investment of euro300 million.
NEOMAN, the bus division of the euro7.4 billion MAN Nutzfahrzeuge Group, on Monday signed a Letter of Intent with Pune-based Force Motors to set up a joint venture for building chassis, buses and coaches for Indian and Asian markets.
The LoI, signed during Indo-German Business Summit in the presence of Indian Prime Minister Manmohan Singh and German Chancellor Angela Merkel, would be followed up with an agreement for another joint venture Man Force Trucks Pvt Ltd in the heavy truck sector.
"The investment in the buses JV would be about euro100 million while another euro200 million would be for trucks," Abhay Firodia, Force Motors chairman and managing director, said after signing the LoI with Neoman Bus chairman Anton Weinmann.
Production for the Indian market is expected to begin by the end of next year, Firodia said, adding the joint venture would then manufacturer products for other Asian markets.
The company plans to manufacture 4,000 vehicles per year.
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