Vectra to set up JV in Abu Dhabi

<div class="section1"><div class="Normal">NEW DELHI: This is another first for the Indian automotive industry. The UK-based, NRI-promoted Vectra group has joined hands with Bangalore''s Azad Body Builders and UAE''s Bin Jabr group to set up a tri-party joint venture in Abu Dhabi for locally building buses for the Gulf market.<br /><br />The JV agreement has already been inked and the venture — Intercontinental Industries — expects to commence operations by this year-end, senior officials from the $1 billion Vectra group told The Times of India.<br /><br />The JV will build luxury, commuter and mini school buses for the region.“This is the first Indian automobile JV to be established in the Gulf. Indian companies are exporting fully-built buses to Abu Dhabi and we saw potential for setting up an assembly unit there,� the official said. “We will source the chassis for these buses from any of the existing Indian firms like Ashok Leyland and Eicher, and build bus bodies on these basic skeletons. Luxury buses will be custom-made based on customer preferences.� <br />Vectra is in the process of finalising investments for the UAE JV.<br /><br />Vectra owns equity in Tatra truck unit in India along with Terex Corp of the US. The two firms have also established on Monday a $12 million JV to produce construction equipments in India.<br /><br />Terex Corp chairman and president Ron DeFeo said both Terex and Vectra will hold equal stakes. “We aim for 10% share of construction equipment market in India in first two years of operations.�<br /><br />The company would make vibratory loaders and skid steer while two more products - vibratory compactors and midi excavators - will be available by the year-end. The firm intends to add 180 jobs in Indian venture and plans to make India the production and export hub for construction equipment.<br /><br /><formid=367815></formid=367815></div> </div>