VE Commercial Vehicles, which sells the Eicher brand of buses, has made strong inroads in the bus segment in recent times. Aggressively working on increasing its co-operation with the STUs across the country, Eicher has demonstrated its tech capability through its Hybrid and Electric Skyline Pro models which, along with its diesel variants, make for an expanding product portfolio across different sub-segments within the bus sector.
We find out more on the performance and future plans of Eicher’s bus business in an exclusive interview with Mr. Shyam Maller, EVP – Light and Medium Duty Trucks and Buses, VE Commercial Vehicles.
Excerpts:
How has Eicher’s bus business performed in FY18? Please share details in terms of sales numbers, market share, new product introductions, etc. What have been the growth drivers within the segment?
Eicher has always set new standards for itself, maintaining a positive sales trend and healthy market share, even though the market is down. Eicher has manufactured more than 15,000 buses last year. This includes both chassis & built-up buses for domestic & export markets across segments. We are expecting good traction in the coming months with the school buying season starting in the next quarter. Demand from inter-city and route permit in this quarter is also expected to make a bounce back. Our bus market share stands at 17.5% with sales of 8,197 units till January 2018.
The bus industry is currently in the stabilisation process following the immediate impact of transition to the BS-IV fuel norms and GST implementation last year. In the private segment, good monsoon, coupled with positive festive season last year demand led to revival of growth in the route permit and inter-city segment. In public transportation, the revival is expected to be led by demand from Government undertakings fuelled by initiatives like Smart City & AMRUT. Also, several cities are in the process of replacing their ageing fleet of city buses and going in for new buses through the PPP route.
The industry is also steadily moving towards cleaner fuels, with CNG and electro-mobility in the lead. VECV showcased the Hybrid Skyline Pro school bus with modern safety features in 2016. With the bus receiving huge positive response, we moved ahead with our technology and went on to launch the electrification technology, ‘REVOLO’, on its industry leading bus platform – ‘Skyline Pro’. The new electric, Skyline Pro E bus adds to the successful Skyline Pro range and marks a significant move in the company’s direction to build smart and sustainable transportation solutions for India.
We would soon be commencing trials with major STU and customers. We also have deliveries of our Skyline Pro electric bus lined up for a leading STU, in this financial year.
The overall standard of school buses in our country has catapulted to a whole new level over the last few years, with almost all OEMs coming up with buses that are in a new league in terms of quality, safety, comfort and connectivity. How have Eicher’s offerings in the school bus space evolved over the last year and half or so? What has your philosophy been behind upgrading your products in this category?
In our continuous endeavor to meet and surpass customer expectations, we introduced the Skyline Pro safe bus with high end features such as telematics with school-specific features for parents & schools, surveillance camera inside the saloon and also reverse camera, RFID tags for tracking school kids, anti-bacterial seats, soft and appealing interiors, etc. Besides, we have also introduced the AC range of school buses in Skyline Pro.
What difference does Eicher deliver when it comes to safety in its range of school & other buses?
Demand for technology that enables safety, information, navigation and remote diagnostics is on an upswing in the commercial vehicle space. Further in the school bus segment, an increasing number of incidents are raising concerns about safety over the past few years, and thus schools and parents are going an extra mile in ensuring that their wards get the best of technology when it comes to safety.
Entrusted with children’s safety for the past 20 years, Eicher is identified for its safety features, modern design and futuristic engine technology that meet international standards. Having incorporated the Bus Code before the Government has implemented it, Eicher offers a few unique features that make our bus the safest one in its class. Some of the key features include compliance to the Bus Body Code – AIS 052, anti-lock braking system and speed limiters. In addition to these features such as retractable seat belts, guard rails on windows, low step height, emergency exit, school bus stickers, First Aid box, etc., are in-built to provide maximum comfort to the passengers.
How would you define the future of school & other category of buses in the Indian market over the next one to two years? Where do you see Eicher’s role in this overall market growth in terms of quality and quantity?
With positive sentiment gradually returning to the market following the GST regime from July 2017 onwards, a healthy pipeline of BS-IV models and demand from the route permit and school segment, recovery of the bus market is expected in the short term. Further, implementation of key regulations and the Bus Body Code will pave way for safer and more efficient products. The ‘Bus Code’ by the Road Transport Ministry that comprises of regulations for safety, comfort, uniformity, reliability, quality & lesser NVH levels, is a key turning point. Further, the industry is also steadily moving towards cleaner fuels, with CNG and electro-mobility in the lead.
Over the next 1-2 years, our strategy is to follow a step by step approach towards consolidating our position across segments and expanding our footprint in unexplored markets. Maintaining and improving our share in the school and staff segment while increasing our share in the route permit and inter-city segment by relevant product introductions and reach will be the aim. We have the technology for the more complex BS-VI engines and will roll out the updated and more efficient engines much ahead of the deadline of April 2020. Subsequently our portfolio will comprise of advanced technologies like AMT, EV, advanced telematics solutions, contemporary safety features in products ranging from ambulance, buses to sleeper coaches. We will continue to leverage the robust bus portfolio through Starline, Skyline and Skyline Pro fully built bus variants, catering to the basic, value and mid premium segment respectively.