Volvo-Eicher Commercial Vehicles (VECV) has been a successful joint-venture and the first factory to be born out of this joint-venture is a state-of-the-art bus body manufacturing facility at Baggad, around 50 kilometers outside Indore. located near the chassis manufacturing and engine manufacturing facilities of the company, this plant is an important element of VECV’s aim to become a leader in the bus segment. And B Anil Baliga, Senior Vice President, Bus and Application, VECV is particularly proud of this newish facility.
One major reason for his pride is that the plant has been helping VECV grow rapidly, particularly in the light bus segment. In 2008 when Eicher Motors tied up with Swedish manufacturer Volvo to make commercial vehicles, some had dismissed the move as too little too late. But Eicher’s marketshare in buses in particular has grown. “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” Baliga says. Advancements in engines and construction, particularly as manufacturers like VECV have started to supply fully-built buses have driven this change.
“There is also the cost factor that plays a very important role here”, Baliga points out. “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”, he added. The share of heavy-duty buses in the bus market which is expected to be just short of 74,600 units this year has fallen from 65 per cent in 2005 to 35 per cent today.
Even state and urban transport corporations, still among the largest bus buyers in the country are looking at lighter buses. Baliga points out that Indore, VECV’s ‘home city’ in a matter of speaking, the new Bus Rapid Transit corridor that has been built has medium-role buses operating. A medium bus can seat in excess of 65 passengers whereas a heavy-duty bus seats around 72-80, so Baliga believes the costs are skewed in the lighter buses favour.
However, the biggest leg-up for VECV and its rivals in the manufacturer space has been the implementation of the Road Transpoprt Ministry’s new ‘Bus Code’ that imposes safety and testing norms on buses. “While the ministry has kept some of the rules in abeyance so that bus body-builders can adapt, these new norms greatly enhance safety and comfort and as a large manufacturer it is easier for us to deliver. At some unorganised body-building facilities almost every bus was unique”, Baliga points out.
But the mainstay of VECV’s bus business and their strongest market is for school buses, where their Skyline and Starline buses enjoy almost 30 per cent marketshare. The March-July period is the peak season for school and college buses and Eicher is the market leader. “We have built very strong brand recognition in this segment, so much so that when new schools open they very often come stright to Eicher”, Baliga says proudly but does add that his sale teams also do a lot of work. However, the past few years have seen Eicher also ramp up sales of staff buses for companies and private route-permit operators.
However, Baliga is keen to stay ahead of the competition. With his new series of school buses, VECV is not only offering air-conditioning as an option but also a online bus-monitoring service. “We will not only have closed-circuit cameras inside the buses with a live feed provided to the school but also GPS tracked location alerts for the school and parents as a service that we will offer schools for a nominal cost every month”, he pointed out. “Safety is a service we feel that schools and parents will pay for, and by offering an off-the-shelf package I think we make it much easier for schools to offer this service.”