India has shown remarkable growth of infrastructure in last two decades in all aspects including surface transport. Well-built roads and improved driving conditions have given a positive thrust to bus transport. It becomes the lifeline in rural and urban areas.Brief about Bus Sales Strategy and Business planning Research report, Primary and secondary research analysis, Product life cycle. Automotive. Marketing strategy.
With an increase in the demand for good quality buses, automotive industry expects a great time ahead. While a big chunk of the demand remains unexplored, experts find it lucrative in the coming years. It is estimated that existing OEM giants like Volvo, Scania or Mercedes are going to dominate premium bus market, but a lot of new players will also make their presence. This segment ensures a promising time for OE, suppliers and other stakeholders.
With an intention to be at par with the global standards, Indian government plans to implement new Bus Safety Code. It will provide comprehensive guideline towards safety and comfort parameters. In spite of being a revolutionary step, it will be a great challenge for unorganized bus body makers. Compliance with the proposed code will be a big challenge for them and also giving good opportunity to be in the Industry with new technology which meet new bus code.
ACG conducted a study and defined product features on the basis of application, type of the city and regulations like bus code.
A few salient features of the study:
• State wise market dynamics have to be considered by stakeholders.
• Market size of >5T GVW segment has shown a phenomenal double digit growth in last four years.
India is a vast country where regional and geographical factors play significant role. Hence, city wise, state wise and zone wise analysis gives more clear picture of it. ACG conical matrix considers all parameters for a macro level research. Surveys indicate that people feel a need of color-coding based on compliance of safety parameters. It will create awareness about traveling in compliant buses only.
South India is the biggest market for buses followed by North, West and East India. South Indian market is predominated by new buses. Whereas a large number of old buses run on North Indian roads. For trial basis new safety color combination could start with South region. In our detail report, we have done study on what factors play important role in every states to make it attractive bus market.
Premium Bus market is the attractive segment in India and registered positive growth. In long term, premium Bus segment is giving better return on investment in spite of high initial investment.
Bus Running cost structure:
Strong Key Market Trend:
• South and North Indian market have shown a positive growth since 2009. Improved road conditions, increased number of travels, willingness to pay high and enhanced lifestyles are the prominent factors behind the growth. Tamil Nadu and Rajasthan are among the top performers.
• East and West zones show a significant drop in the same period. Uttar Pradesh is the lowest performer.
• Southern passengers are willing to pay higher tariffs in lieu of improved services. However, North Indian passengers are reluctant to pay high.
• Ashok Leyland and Tata Motors have shown a significant drop in the market share except in Tamil Nadu and Rajasthan respectively (where they are undisputed leaders).
Top Bus States in India:
Region wise fleet life is different in all states
Market size, Major Models, Market leader and Applications of Buses:
• Tata Motors continues to be strong in the 5T-9T segment whereas Ashok Leyland leads in higher tonnage.
• Market shows an inclination towards luxury buses. However, safe and comfortable budget buses still have maximum share of the pie.
• Luxury buses have more initial investment, but they give better ROI as compared to normal buses.
• New players like Scania challenge the monopoly of Volvo in the Indian market. Other companies like Mercedes and MAN also have luxury vehicles with similar quality, but they are unable to penetrate the market.
• Technical advancements like Dashboard Diagnostic Tools become popular due to their ability of reducing downtime in case of breakdown.
For long term Luxury Buses are giving better return to fleet operaters
ACG has done primary and Desk research and draw detail model of expected parameters which would be important to buy Bus:
Major Bus routes in India:
State wise Market Intelligence Strategy report gives good insight about bus industry in India. OEM and new entrants can draw precise strategy for market development. The report helps them in multiple ways:
During our survey, we met Bus fleet owners and discussed with them in detail:
Contact to buy full report:
Mr Saurabh Mittal
Email: saurabh.mittal@acganalysis.com
It is time that the OEM takes charge for the bus code implementation. The bus has no existence without the platform and all its aggregates. This has been dogging this code ever since it was first spoken on in 2000!!!
Narayan Menon
Career Transition Coach & Consultant
Good opportunity for vehicle manufacturer and good news for job seeker in transportation and commercial vehicle sale.
Shivaji Atpadkar
Deputy General Manager
TATA AUTOCOMP SYSTEMS LTD – SCM
Good Article. Remaining states has different requirements & probably
mid or mini bus. They require more power than speed in mountain area,
better maneuverability, cheaper transport etc. It will be better to
touch these aspects too.
Sanjiv Mantri Chief Engineer,
Vehicle Integration, AGM
Tata Motors
Last couple of years it was truck wars and the race is on to bring
interesting results by next year last quarter. Now the war in the bus
market is on. Only those will win who can integrate the available
resources, technology with a better supply chain management and service.
Wait for the surprising results ahead.
Mohankrishna Gaddipati
Business Head – Axles and 5th wheel coupling plant
RSB TRANSMISSIONS (I) LTD
ACG is the only consulting company in Automotive Industry who is having in depth knowledge in Global market and macro level information like state wise and Model wise. This is definately going to be a Game changer in Industry.
Alok Prasad
Automotive Consulting
Zurich
Excellent Market Intelligence information. I will consider this analysis to make strategy.
Dr. Graziano Papa
Libera Professione
Marketing and Advertising
Brescia,Italy
Excellent information; i am closing following Autobei since some month, the articles and analysis published are very useful for forecasting and updating the forthcoming technologies/automobile especially in India
Great report, really appreciate.
Sanjoy Roy
Business Development Manager
Automotive Commercial Vehicles (After sales , Parts , Accessories )
Scania Case Carrier Kirlosker Still
Middleeast
Full of useful insights. Thanks
V Bala Kumaran
Regional Service Manager
MHCV – Tata Motors
Indepth study, Excellent.
Rajinder Singh Bhasin
Managing Director
JANTA ROADWAYS Pvt. Ltd
Great Work Done. Keep the good work Going guys!!!
Anshuman Upadhyay
Channel Manager-Bus
VECV
Excellent article, this help to all OEM’s to focus on their business