Hyundai suspends plans to sell buses in India

South Korea’s biggest automaker Hyundai Motor Company has suspended its plans to sell buses in India due to a slowdown in India’s economy. Hyundai Motor Company has signed a technical agreement with the London-headquartered Caparo group to manufacture the buses in India. Since the commercial vehicle industry is sensitive to the cost of finance, it has witnessed a sharp drop in sales. The recent measures that have been instituted by the Reserve Bank of India (RBI) and the government are expected to bring down the cost of finance and the cost of vehicles. (December 11, 2008)