Domestic commercial vehicle maker Force Motors [Get Quote] and German truck major Man Nutzfahrzeuge plan to manufacture luxury buses. Both the companies already have signed a licence agreement to make high tonnage trucks in India.

"The Force-Man team is planning to enter the luxury bus market in India and certain other Asian countries. The move widens the scope of the tie-up, which previously was restricted to launching high tonnage trucks," said a source.

The source said the buses were expected to hit the road by the next year in the form of completely built units from Man's overseas manufacturing facility. The buses, which will seat more than 100 people, would be priced in the range of Rs 40-60 lakh. However, Force Motors' officials declined to comment.

In late 2005, Force Motors and Man had announced that they would jointly make high tonnage trucks (16-25 tonne) for various Asian markets. The production is likely to begin in another few months. In medium term, the annual production is pegged at 24,000 trucks.

The joint venture will help Man open markets outside Europe. The German major will make vehicles that suit the Asian infrastructure. The company is also likely to use components manufactured in India.

Volvo is the only company in the country that sells high tonnage trucks and luxury buses. The company has its plant near Bangalore where trucks and buses are assemble from completely knocked down kits.

Over the last five years since its inception, Volvo India has been able to sell 2,400 trucks in the 15-30 tonnage range. In 2005, the company sold 1,200 buses and trucks.