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MOTORINDIA
l
June 2012
133
duction of medium-duty engines in
Pithampur is likely to start this year.
Bright days ahead for Volvo
Buses
In its 10th year in India, Volvo
Buses announced a SEK 500 M
investment plans for the next five
years. In the first phase the company
will expand its current industrial es-
tablishment and introduce a range
of new products. Over the last dec-
ade the company has emerged as a
leader in its class with a dominant
market presence and in the process
redefined 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, formerly head
of Volvo Buses in India, and cur-
rently Senior VP Business Region
International and Chairman of the
Board 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 buses, from 1,000 people to
5,000 people and be a billion dollar
company by 2015.”
By 2015, Volvo aims to export
20-25 per cent of its volumes not
only in South Asia but also to mar-
kets beyond. Volvo Buses today has
over 70 per cent market share in the
luxury inter-city coach segment and
over 50 per cent market share in the
low-floor air-conditioned city bus
segment respectively. Towards the
end of 2011, Volvo Buses launched
three new city buses and coaches in
India, and thus increased the product
range to encompass 10 buses.
Global outlook
Continued earnings improve-
ment in 2011 was characterized by
a continued recovery in demand in
the group’s mature markets and a
continued strong development in
the emerging markets. Towards the
end of the year the first signs of a
moderate slowdown were visible in
Europe.
Demand in Europe and North
America increased during the year,
but towards the end of the year it
weakened in Europe. The Japanese
market was adversely affected by
the earthquake and tsunami that hit
the country in March, but recovered
towards the end of the year. In Brazil
demand was strong during the year.
In 2011 the heavy-duty truck mar-
ket in Europe 29 (the EU, Norway
and Switzerland) expanded by 35
per cent to 242,400 trucks compared
to 2010. The situation still varied
significantly within Europe. While
parts of southern Europe were strug-
gling, the other regions in northern
and eastern Europe had recovered
from the low levels of 2010. In
2012, the total market for heavy-
duty trucks in Europe 29 is expected
to experience a moderate decline
to a level of about 220,000 trucks.
The start of the year is expected to
be slow with a gradual pick-up in
demand as customers start to renew
their fleets ahead of the new emis-
sion regulation in 2014.
In 2011, the total market for
heavy-duty trucks in North America
increased by 52 per cent to 216,100
units compared to 142,100 units in
the previous year. In 2012, the to-
tal market for heavy-duty trucks in
there is expected to grow to a level
of 250,000 trucks.
In 2011, the total market in Brazil
expanded two per cent to 111,500
heavy-duty trucks (109,800). The
increase was lower than anticipated
because of less prebuying than ex-
pected ahead of the new, stricter
emission regulation that came into
effect on January 1, 2012. The to-
tal Brazilian market for heavy-duty
trucks is expected to record a slight
decline and reach a level of 105,000
trucks in 2012. The beginning of
the year is expected to be slow fol-
lowed by a gradual pick-up in de-
mand driven by a general increase
in economic activity and increased
acceptance of the new, more expen-
sive Euro V trucks.
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vehicle zone
Focus on Truck industry