Hyderabad: Sweden-based bus manufacturer Volvo has decided to set up its bus body-building unit in Karnataka instead of Andhra Pradesh, which had offered the bus giant a number of incentives.

Volvo decided on Karnataka since Bangalore already has a strong infrastructure in bus bodybuilding.

Volvo was earlier outsourcing the bodybuilding in India to a Bangalore-based company, Jaico Automobiles (Azad Group).

While engine parts and chasis are manufactured in Sweden, bodybuilding was done in the outsourcing unit.

However, with a number of complaints coming in on defects in structural design, defective air-conditioning against the buses, the company decided to set up its own bus body building unit in the country.

Volvo says it opted for Karnataka as it already has a strong infrastructure for bodybuilding units.