Hyderabad: Swedish vehicle maker Volvo has chosen Bangalore for setting up its bus body-building unit instead of Andhra Pradesh, which had offered the bus giant incentives for moving into the Chittoor district.
Earlier, Volvo had evinced interest in setting up a unit near Chittoor after a meeting with transport minister Kanna Lakshminarayana and the then Andhra Pradesh State Road Transport Corp MD M.V. Krishna Rao.
Volvo was earlier outsourcing the bodybuilding in India to Jaico, a Bangalore-based company. While engine parts and chassis are made in Sweden, bodies were built at Jaico.