Volvo plans to steer bus exports from India

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New Delhi, Jul 28: After being an export hub for small cars for global auto majors, India is set to become an export base for buses as well, with Sweden-based Volvo Bus Corporation mulling to use its Indian base for export of both, long-distance AC buses as well as city buses.

"Our manufacturing base in India will also cater to markets in the Middle-East, Asia and Africa once the company starts export by the middle of next year," said Akash Passey, managing director, Volvo Buses India. "Keeping our focus intact on the domestic market, Volvo Buses India will gradually increase its export to overseas countries to about 25% of the total production in next two-three years after our total production touches 1,000 units by 2010," he adds.

According to the Society of Indian Automobile Manufacturers, domestic sales of buses went up by 34.4% in 2007-08 at 33,085 units as against 24,616 units in 2006-07. While sales of Ashok Leyland, the leader in the segment, grew by 51.6% at 16,818 units vis-à-vis 11,094 units in 2006-07, sales of Tata Motors went up by 22.7% to 15,540 units in the last financial year as against 12,658 units in 2006-07.

Even export grew by 11.78% at 9,365 units during the last financial year as against 8,378 units in 2006-07. Export of Tata Motors' went up by 5% to 4,781 units as against 4,553 units in 2006-07, Ashok Leyland registered a growth of 18% at 4,422 units compared to 3,745 units in the financial year 2006-07.

"The growing demand for low-floored AC buses for the intra-city transport will help us to grow by 120% from 207 units in 2007 to an estimated 450 units in 2008," said Passey, adding that around 50% will be the city buses while the rest will be long-distance AC coaches. The company has recently bagged order from Karnataka State Corporation to supply 240 buses in the current calendar year.

Volvo Buses India Ltd is a 70:30 joint venture between Volvo Bus Corporation of Sweden and JAICO Automobiles. Volvo Buses entered into the Indian market in the end of 2001 as part of Volvo India to sell chassis in association with JAICO Automobiles.