Volvo clocked a 150 per cent increase in volumes in 2008 compared to 2007. It has also announced a major initiative to establish a separate division for Consultancy Services in India. The need for modern bus transport system is fast maturing and Volvo Buses aims to tap into this growing opportunity by introducing its Consultancy Services in India.
Volvo will work with various corporations showing interest in improving transport efficiency. help in traffic planning and helping in modern approaches to city planning by de congesting the city and moving.
Mr. Akash Passey, Managing Director, Volvo Buses India Pvt. Ltd., said: “The sustainable business model that modern Volvo Buses offers its customers, allow us to remain positive even in a downturn. The culture of bus transport is changing in India. The long-term impact on a city, mobility and life cycle costs are key criteria in city bus planning. Central and State Governments are committed to build transport solutions that meet growing urbanization demands. We are well poised to partner with various civic authorities in building transport infrastructure to bring in tomorrow’s solutions today.”
The current inter-city order booking does not yet include that potential from the city segment which is now strongly backed by Central Government initiatives. These new initiatives will provide a further fillip to the industry in 2009.
“This year we will strategically focus on city segment through various long and short-term initiatives. We today have the most intense city transport model in Bangalore, Mysore, Chennai and Pune – which will support the city planning process where decongestion remains No.1 priority. As the market leader globally, we have the expertise and the products to support this development and are now ready to bring it into India in a focused manner through separate Consultancy Services,” added Mr. Passey.
BMTC is currently operating 300 Volvo city buses in Bangalore. The results are quite obvious. For example, in the airport corridor, but for BMTC’s Volvo fleet, there would be a requirement for 22,000 additional passenger vehicles to transport passengers to and from the airport. Just imagine 22, 000 additional vehicles on Bangalore’s already congested roads.
Mr. Passey feels that there will be significant growth in the city bus segment in the next 3 to 5 years. Most cities will move from low range products to medium and premium applications.
Volvo is looking at a small share in the JNNURM order for 15,000 vehicles. Out of the total order nearly 20 per cent would be low-floor buses which could be in the price range of Rs. 50 to Rs. 80 lakhs. Volvo is currently at the top end of the segment, and is hoping to get a small share. Even if we talk of a 1 to 2 per cent share of the order, the number will be close to 300 buses, which will be significant orders for Volvo and all these would be city buses. “We will be able to make an entry into 8 to 10 cities as a result of the JNNURM”, says Mr. Passey.
Consultancy support
Consultancy Services will bring together Volvo Buses’ experience and expertise from across the globe in creating projects that will provide sustainable solutions customized for a city’s transportation needs. The team will create modern vehicle and transport management system, so that State Road Transport Corporations can streamline operations, reduce costs and provide better service for passengers. The service will partner with various stakeholders in the process the customer organisation.
The service will include manpower based in Sweden and in India who will operate on project basis with customers and also partner with allied local agencies in the development. Projects on this account are already on the anvil. Rapid urbanization creates an enormous challenge for the civic authorities and the cost in terms of fuel, lack of business mobility and safety is enormous.
Volvo Buses has created high-efficiency bus-based transport systems that make it far more attractive to travel by public transport. Volvo has delivered more buses for BRT systems than any other supplier in the world. A few of the cities where Volvo works with on mass bus transport systems are: Bogota in Colombia, Mexico City in Mexico, Goteborg in Sweden, York in Britain and Curitiba in Brazil.
Mass Transport Bus Systems the world over are largely subsidy-free in principle. They generate profit from day one. Today there are about 50 cities with various degrees of implementation and about 100 cities that are planning for BRT.
BRT is the most efficient way to transport people. 13 cities are going to BRT growth and in the next 5 years we hope to see phenomenal growth in the BRT corridor. Cunsultancy from Volvo – who have worked with 40 cities around the world. They will over the next 6 months work with BMTC and share data and their global experience and based on that will implement measure to improve transport efficiency. First step will be from BMTC.
Mr. Passey is hoping that five years from now 50 per cent of turnover would come from soft office which includes consultancy services, aftermarket, parts and service. The company has 38 service points across India.
In 2008 Volvo launched its multi-axle coaches, which have been received well. The company has sold 50 units of the multi-axle coach, mostly to private operators. It currently has over 400 city buses and close 2,000 inter-city buses on Indian roads.
