Bus sales to defy industry slowdown, say experts

Improved road network and growing emphasis by state governments to promote public transport, according to auto experts, will help bus sales grow in double digits despite a general downturn in the automobile sector, which is expected to get worse in the following months.

The segment posted growth of nearly 10 per cent during the first quarter, selling nearly 17,500 units in the three-month period, according to the Society of Indian Automobile Manufacturers (Siam), the country's apex auto body.

Although the rise is substantially below the growth in the corresponding last year, when the segment posted a 26 per cent increase, it is still better than other segments, say company officials of leading commercial vehicle makers.

 

K Shridharan, chief financial officer, Ashok Leyland, said, "Private participation in the bus segment is expected to increase bus demand, which exceeded demand from the government last year. We expect the segment to grow in double digits as high fuel prices will encourage people to shift to public transport."

Companies like Tata Motors, Ashok Leyland, Swaraj Mazda-Isuzu, Eicher Motors and Daimler have either already introduced some buses mainly in the inter-city luxury coach segment or are cementing plans to launch products aimed to similar mass market categories including mass transit systems.

Tata Motors, India's biggest commercial vehicle player will commercially launch buses from its joint venture with Brazilian bus body maker Marco Polo this year, in which the Indian company holds 51 per cent stake. Besides the company will also deliver a Minibus for intra city transport.

Tata Motors holds a market share of more than 44 per cent closely followed by Ashok Leyland with a share of 24 per cent in the light, medium and heavy segment. Market shares are for the first quarter of the current fiscal and are based on the figures provided by Siam.

Meanwhile, Isuzu through its Indian partner Swaraj Mazda has launched a low floor, 40 seater luxury bus in the local market. Both partners are optimistic selling 300 units of the bus, which costs Rs 60 lakh, by the end of this year.