In fast lane

New Delhi, Aug. 14: Swaraj Mazda is all set to enter the luxury bus segment next year.

The company, which has formed a technical collaboration with Isuzu of Japan, plans to roll out its first luxury bus in April 2007. This will also mark Swaraj Mazda’s entry in the heavy commercial vehicles (HCV) category.

For this purpose, the company has built a Rs 160-crore bus building facility at Ropar in Haryana.

“Initially, we plan to roll out 100 buses next year from April and take it to at least 1,000 by 2008. The coaches will be made in-house,” said officials.

In this segment, the vehicle from Mazda will compete with Volvo’s B7R, the bus to be launched by German Mercedes Benz and one from Hispano, the Spanish manufacturer in which the Tatas now have a 21 per cent stake.

Meanwhile, Daimler Chrysler India (DCI) has tied up with Jalandhar-based Sutlej Motors for its bus bodies. Sutlej Motors has plans to make coaches for Mercedes Benz buses, which are expected by the year-end. DCI plans to launch 25 luxury buses this year and 95 buses in 2007.

The bus segment in India comprises about 15 per cent of the commercial vehicle market of 3.5 lakh units. As new players move in, the share is expected to increase.

Last year, Swaraj Mazda sold 13,000 light commercial vehicles (LCVs) and intermediate commercial vehicles (ICVs). This year, the target is to sell at least 16,000 vehicles, said a company official.

Meanwhile, the tussle between Punjab Tractors and its Japanese partner, Sumitomo Corporation, over the control of Swaraj Mazda has reached the company law board with Punjab Tractors charging Sumitomo with mismanagement and suppression of facts in the joint venture.

At present, Sumitomo holds the largest stake of 41 per cent in Swaraj Mazda, while Punjab Tractors owns about 14 per cent.

The firm was incorporated in 1983 as a joint venture between Sumitomo, Mazda and Punjab Tractors.