After managing to sell just 50 units of its Hispano brand inter-city buses in the country since it was introduced in late 2008, Tata Motors says it will re-focus on the sub-premium inter-city segment next year. Currently, the company sells the Hispano ?Globus? 235 horse-power intercity buses and will be launching a 285 horse-power (hp) in the next three months time.
?It is small but profitable segment and we will re-focus our strategy with some more products,? said Ravi Pisharody, president (CV business unit), Tata Motors. He added that the initial selling had been more of a learning experience and segment creation exercise rather than one for growing volumes. ?We expect better numbers with the bigger 285 hp vehicle,? he said.
Pishrody, however, acknowledged the pressing need for cheaper options in the mid-priced inter-city buses space. According to a report by Crisil Research, the bus demand in India stands at around 70,000 units per annum. Further, there are less than three buses per 1,000 people in India as against around 8-10 buses per 1,000 people in China.
Today, one finds inter-city buses in the premium segment offered by foreign players like Volvo and Mercedes-Benz while the entry-level segment is flooded with local makers. However, roads are improving and a growing number of people are willing spend more money for comfortable road transport. That would mean a growing need for buses offered in the mid-price segment for mass consumption, argue fleet operators. The segment has been attracting the attention of foreign players including Volvo, Navistar with Mahindra & Mahindra (M&M) and Daimler talking of product offerings at mid-price.
Hartmut Schick, head of Daimler Buses, said, ?We have a regional approach for the market we enter and will look at getting the right fit to cater to the Indian market?s niche requirements. We want to be present in the sub-premium mid-priced segment but no decision has been taken yet.?