JV partner sells stake to Volvo

The Azad group, partner in the joint venture with Volvo, has sold off its 30 percent share to Volvo buses India. The Swedish bus maker is planning to increase the production level to two fold by 2012. Exports which are at present a miniscule 5 percent are pegged to swallow a chunk of almost 325-30 percent. More manpower will be hired to increase the production capacity coupled with the doubling of the facility at Bangalore.

In another development the bus maker announced that it is planning to downsize engines that will cut-across the model lines from 2013. Key among the downgrades will be the diesel mill that displaces less than 2 liters. All the range offered in India is operating on a single diesel engine, namely the 2.4 litre-5 cylinder D5. With the launching of the S60 sedan, the strategy of downgrading might just be around the corner to make the XC60 and the sedan more affordable.

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