On the eve of its 10th year in India, Volvo Buses announced SEK 500 M investment plans for the next five years. In the first phase the company will expand its current industrial establishment and introduce a range of new products.
Over the last decade the company has emerged as a leader in its class with a dominant market presence and in the process re-defined how people see buses. The Indian market has witnessed a paradigm shift in the bus business. While earlier, coaches built on truck chassis were the norm of the day, the entry of Volvo Buses introduced the concept of a true-bus chassis with rear engines. Volvo Buses also brought in the idea of BRT, efficient, bus-based public transport systems.
Mr Akash Passey, head of Volvo Buses in India, said, “The need for buses as sustainable transport solutions is high in India and we aim to grow multifold in the years to come. From 1,000 buses to 5,000. From 1,000 people to 5,000 people and be a billion dollar company.”
The ambition is to be there by 2015. By this time Volvo aims to export 20-25% of its volumes not only in South Asia but to markets beyond.
Volvo Buses today has over 70% market share in the luxury inter-city coach segment and over 50% market share in the low floor air-conditioned city bus segment respectively.
Towards the end of the year, Volvo Buses launched three new city buses and coaches in India and thus increased the product range to encompass ten buses.