Valmet Automotive to build electric buses in Finland

Finnish cars and other industrial products manufacturer Valmet Automotive and Jeti Industries have signed a preliminary agreement for serial production of modular electric buses at Valmet Automotive’s plant in Uusikaupunki, Finland, said Valmet Automotive in a press release on Tuesday.

If the agreement is finalized, electric buses for city and regional transport will be produced for the first time in the Nordic countries.

In September 2025, Valmet Automotive confirmed its new strategy to offer its advanced industrial serial production expertise to other industries alongside its car manufacturing.

The production of electric buses aligns perfectly with this strategy, as it leverages the company’s strong expertise in electrification, modern production infrastructure, and efficient quality systems, said the company.

“This preliminary agreement is another concrete step in advancing our strategy of expanding into new industries. Jeti Industries has developed an excellent product innovation with an existing, international market. We are excited to participate in the development of novel mobility solutions and to enable the serial production of a Finnish high-tech product,” said Pasi Rannus, Chief Executive Officer of Valmet Automotive.

Jeti Industries’ innovation is a product line of electric buses designed for the needs of public transport.

The design is based on a practical, experience-driven understanding of bus transport needs, combined with advanced Finnish software expertise to optimize vehicle usability, reliability, and life cycle costs.

Jeti extensively utilizes domestic and European design and component expertise. The company has established technology partnerships with leading European players, and the buses’ modular architecture allows for flexible assembly of different model versions for various public transport applications. This solution supports efficient serial production in Europe and offers public transport operators high-quality, reliable, and cost-effective electric bus options, said the press release.

The buses planned to be manufactured in Uusikaupunki would have a high degree of domestic content, both in terms of components and local labor. In addition to assembly, production would employ numerous Finnish subcontractors, strengthening the automotive industry’s value chain. Jeti Industries’ electric buses are type-approved for use in the EU and have been piloted in real-world public transport conditions. Jeti has already manufactured individual units, with the first bus put into service in 2020.

“We have been developing our modular product concept with a long-term perspective, and our innovative technical solutions make our products highly price-competitive in this growing market. Valmet Automotive’s long-term experience in serial manufacturing of a wide range of complex vehicles enables us to scale production quickly and reliably. This collaboration is also supported by our shared commitment to sustainability and environmental values,” said Niko Andersson, Chief Executive Officer of Jeti Industries.

Negotiations on the final agreements are underway, the press release added.