FAW bus fleet rolls off India's JV production line

Shanghai, September 4 (Gasgoo.com) The new luxury bus made by Chinese auto giant FAW Group, in collaboration with Ural India, rolled out of Ural's Haldia factory earlier this week, Times of India reported.

Ural India, an Indo-Russian joint venture, has tied up with FAW to produce buses and small cars. FAW agreed to invest Rs 1500 crore (US$300 million) in the first phase in the state, and the production of these buses is part of their first-phase investment.

The FAW-Ural joint venture will produce luxury, semi-luxury and ordinary buses with a price tag ranging from Rs 30 lakh to Rs 50 lakh. A company official had said they would produce their first 100 luxury buses by October.

Though a major part of the buses have been assembled from China, some parts have been locally produced in India. The company is producing both AC and non-AC buses, that have standing accommodation as well.

"We think that there is a great demand for buses in the city, with 15-year-old buses having been phased out," said Ural India chairman J K Saraf.

The FAW-Ural venture had earlier shown interest in the Singur land from where the Tatas pulled out their Nano project. China's FAW officials had also been to Singur. They were keen to start with 500 acres for their auto factory.