The Volvo hybrid will be     manufactured at its Bangalore unit. In order to promote environmental  friendly vehicles, the Central government has recently launched the FAME India ( Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India) schemes, offering incentives on electric and hybrid vehicles.

“Volvo has a leading position in hybrid technology and electromobility. Hybrid buses are an important solution for cities that want to reduce vehicle emissions. I am very proud that Volvo is the first bus manufacturer to introduce hybrid buses in India,” said Håkan Agnevall, president, Volvo Buses.

Volvo is a leader in hybrid technology with more than 2,300 hybrid buses sold to over 20 countries. The Volvo hybrids offer a fuel consumption which is up to 39 percent lower than that of regular diesel buses, which in turn cuts carbon dioxide emissions by the same amount and nitrogen oxides and particles by 50 percent.

Globally, Volvo's electric hybrids, offering fuel savings of 75 percent, are running in regular traffic in Gothenburg, Stockholm and Hamburg. So far, the firm has sold over 5,000 hybrids and full electric buses worldwide.