Tata Motors plans mega bus platform  ( May '30,2006, BS)

Tata Motors is planning to leverage on its strategic alliance with Brazil’s Marcopolo and its acquisition of Hispano Carrocera to create a global bus platform.

Confirming this, Tata Motors Managing Director Ravi Kant said: “The platform will be developed using the chassis expertise of Tata Motors, bus body building experience of Marcopolo and design and technological capabilities of Hispano.”

The platform is expected to be ready by 2008. “Once it is ready, the three players will jointly manufacture and market the new models (based on the platform) across the respective markets,” said Kant.

The global market for buses is estimated at about $30 million, which is growing at 10 per cent every year.

A Mumbai-based commercial vehicle analyst said the tie-up will be beneficial for Tata Motors on a global scale.”Coming together of multiple partners across geographies having technical expertise in respective core elements within a segment will result into quality products having tremendous global appeal,” he said.

Tata Motors has a significant presence in Africa, and West Asia. Hispano is strong in Europe and North Africa and Marcopolo in South America and parts of Europe. Tata Motors will invest Rs 6,000 crore over the next five years in the company’s overall expansion.

Marcopolo is the newly found partner for Tata Motors. The two companies will set up a joint venture company to manufacture buses in India at an investment of Rs 200 crore.

The buses will be for the domestic market and exports. The JV will be operational within a year. Marcopolo will also source bus chassis from Tata Motors.

Tata Motors, during early 2005, acquired 21 per cent stake in Hispano Carrocera.

Getting access to better design & technology and market penetration to the European and African markets were Tata Motor’s strategy for acquisition.