Volvo-Eicher JV Aims to Increase the Bus Market Share
Published On Jul 22, 2016
VECV is India’s one of the most successful joint ventures in commercial vehicle industry and both Volvo and Eicher have grown their market presence in India. This time, VECV is determined to make strong base in the bus market. Currently, it has a strong market share of 30 percent in school bus segment where its Starline and Skyline buses cater to the needs of school transportation. Most of its business comes from March to July for school and college bus segment. As of now, the JV is also offering new school buses with optional AC and GPS for monitoring.
Currently, the bus market for heavy-duty options stands at 35 percent which was 65 percent in 2005. The reason behind this drop is cost as both medium and heavy duty buses can accommodate 65-80 people, hence the light buses are chipping in. VECV is trying to prey on this demand as its state-of-the-art facility near Indore innovates on making buses lighter and also manufactures lighter buses.
Proud about the new facility and Eicher’s aim to grow, Mr. B Anil Baliga, Senior Vice President, Bus and Application, VECV, said, “One major reason for this has been the switch from heavy-duty buses to light buses, where we have a major advantage vis-a-vis our rivals. There is also the cost factor that plays a very important role here. Larger buses, called heavy-duty buses, are not only more expensive to purchase but they also consume more fuel, and outside large cities or long-distance routes transporters are seeing less value.”