Volvo-Eicher Commercial Vehicles (VECV) has been keenly competing with its two main rivals in the CV market and is gaining ground with a focused approach and well-planned strategy. A very strong player in the light- & medium-duty (LMD) segment in trucks, VECV, which had identified heavy-duty trucks (HDT) as one of its key focus areas, is growing steadily in the space in the last few years. What the company has also done is upgradation of its portfolio of buses to a completely new level in terms of technology, comfort and safety, as it attempts to take the challenge to its peers in the country’s highly-competitive bus market.
In an exclusive interaction with Mr. B. Anil Baliga, SVP – Bus Body And Application Manufacturing, VE Commercial Vehicles, we find out about the company’s gameplan to make it big in the bus segment.
Excerpts:
How promising is Eicher’s bus business performance this year? Could you give us a recap of your key highlights in terms of sales figures and new product launches for 2017?
So far the year has been good for us. With the new range of buses and strong drive in the school bus segment, we have a market share close to 30 per cent in the school bus segment. From a market share of only six per cent in 2008-09 in the bus segment, VECV has now grown to have a share of 17 per cent in the domestic LMD bus market. VECV has sold 14,417 buses in the financial year 2016-17. Further, we anticipate growing demand from the State transport undertakings because they are the largest users of big buses for inter-city transport.
Our product range in the school bus segment covers Skyline Pro, Skyline and Starline, ensuring a built-up bus from Eicher to cater to every need.
In terms of new technologies and products, we recently launched AMT buses with support from WABCO, our technology provider. As the next step we are working to introduce electric and hybrid vehicles.
You had showcased the Skyline Pro hybrid school bus and the Skyline AC sleeper coach at Auto Expo last year. How have they been received? What is their status in the market?
The Skyline Pro hybrid school bus and the Skyline AC sleeper coach have received positive response from passengers. The buses are more spacious and comfortable than the regular ones. With its focus on children’s safety for the past 20 years, Eicher is identified for its safety features, modern design and futuristic engine technology in buses that meet international standards. The sleeper coach initial market trials are likely to start in Q1 2017-18. The hybrid bus is yet to pick up in the market and sales will expand with the growing Government thrust on the environment, given the high costs.
Our PRO Series is a range of next generation buses with modern design and futuristic engine technology and contemporary bus interiors like wider seats and parabolic suspension for comfort and soft roof for aesthetics. The Skyline range of buses offers good comfort and style along with enhanced safety and performance that offers superior value for money with a rugged body.
While traditional players, Eicher included, are expanding product portfolio and coming up with better quality products to keep up with rising customer expectations, where does Eicher deliver a difference? Could you list out the top three factors that you think could make a difference between the Eicher brand and your competitors?
Eicher was the first manufacturer to offer school bus, in 1996, in collaboration with IIT Delhi and the Institute of Road Traffic Education (IRTE). We have further developed our platform to suit the market requirements from time to time and currently offer 40 unique safety features for the school buses. Our safety & comfort features are not limited to children but also to bus drivers as we provide ELR seat belts, fog lamps, tilt and telescopic steering, roll-down driver window, etc.
Technology
Our buses are recognized for their safety features, modern design and futuristic engine technology that meet international standards. These buses have been developed and produced as a result of the synergistic working between the Volvo Group and Eicher. VECV has adopted the world class Volvo Group technology in products combined with Eicher’s frugal engineering.
School buses have become much more comfortable, safer and better connected in terms of tracking and telematics with more advanced technology than before. The advanced telematics system provides live vehicle tracking, route information and driving alerts for a better turnaround and increased productivity. Under STUs, we have included technologies such as the intelligent transport system and geo-fencing in our buses for Indore city. We are also working on urban specifications II under AMRUT that will be more technologically advanced. They will be largely for city buses, but the technology can be adopted for school buses as well. Recently, the company has also introduced the Automated Manual Transmission (AMT) in its buses.
Safety and comfort
Eicher introduced “the First Safe School Bus” in India, developed in association with the IRTE in 1996, thereby pioneering the concept of school bus. Eicher buses boasts of being the only player to provide ELR seat belts for the safety of children. They are equipped with advanced telematics system that provides live vehicle tracking, route information and driving alerts. Also, our experienced school bus drivers are trained to provide safe and friendly service to our passengers. Our buses offer Anti-Lock Braking System (ABS) and the speed limiter device amongst the other 38 unique safety features.
Pricing
We have adopted the world-class Volvo Group technology in our products and combined it with Eicher’s frugal engineering. This makes our new range of buses modern, cost-efficient and more productive.
The school bus segment is highly active in terms of technology adoption with all the OEMs battling it out to come out on top in the growing space. Where does Eicher’s presence in this space stand and how do you plan to move ahead?
We are very strong in the school segment in buses where our market share is close to 30 per cent, and we are planning to move ahead this significantly in the next couple of years. We have seen a steep growth in demand for 5-12 ton buses, a majority of which cater to schools due to the increasing awareness among parents on safety of school transport.
Adoption of technology in the buses has stabilised the school bus segment with encouraging factors like the growing size of cities, higher focus on children’s education, opening up of new schools, the changing lifestyle of parents and their opting for school buses. The increase in the comfort levels by offering AC school buses is also driving the demand for these buses. We continue to focus on technology, comfort and safety to significantly increase our market share and strengthen our presence in the school bus segment.
Could you share developments with respect to STU orders? Could you also share details of the other products or plans to expand your presence in the STU segment?
Having received bulk orders from various State transport departments, VECV is vying in the State transport segment for a bigger market share. Even though there was a dip in the bus market two years ago, it has picked up again with a growing demand for State transport and school buses. In the last financial year we have a market share high of 20 per cent in the STU segment for the first time.
We have given buses under the new urban model specifications of the Ministry of Road Transport and Urban Development Ministry under the former JnNURM Scheme. In Karnataka alone, VECV is executing a bulk order of 1,200 buses, with orders in the pipeline from Maharashtra and Bihar. In fact, we have another order lined up from them for BS IV. Earlier, VECV had catered to orders from Gujarat, Maharashtra, Andhra Pradesh, Kerala, Rajasthan and West Bengal.
Going ahead, we are working on urban specifications II under AMRUT that will have more advanced features.
What is the capacity of your bus body plant at Baggad? Where else do you build your buses? Who are the other officially-recognized bus body building partners for Eicher? Please name them, if possible
The VECV bus plant is a state-of-the-art bus body manufacturing facility at Baggad. The multi-model bus plant produces light, medium and heavy duty buses. The plant has been set up under our overriding vision of driving modernization of the Indian CV market. With a current installed capacity of 8400 pa at 20 / shift on 2 shift basis it is expandable to 16800 per annum. The plant has robotic processes for bus painting and is highly mechanized ensuring high quality consistency and productivity. Production of buses in the plant started in September 2013 for catering to the requirements of the school, staff, and city and inter-city segments.
The flexible manufacturing facility at Baggad addresses assembling of the entire range of buses on a single assembly line with the unique shell drop concept. The assembly lines are equipped with significant automation like conveyors for handling of seats, manipulators for windshield and large panels and automatic conveyor for reducing fatigue and driving productivity.
VECV is supported by Audi Automobile and Alma Motors for production of the body of a range of buses.