Building Buses

B Anil Baliga, Executive Vice President – Bus & Application VE Commercial Vehicles Ltd.

- Bhushan Mhapralkar

Q. The Pithampur plant is running at full capacity. How does that augur for buses?

A. We have geared up for a production run of 5500 numbers. We are doing about 6000 to 6100 units. We will be expanding the capacity to take the figure to around 7000 units. We will also be hiking capacity at our bus plant, which is about 25 km from the Pithampur plant. We make bus chassis at the Pithampur plant.

Q. How has been Volvo Eicher’s performance in the bus segment?

A. We have been doing well in the school and staff bus segments. We have been the market leaders in school buses for the last ten years. The staff segment, we have managed to built, and have a 29 per cent share of. Our share of the tourist bus segment and the road permit segment is 10 to 11 per cent. We want to take this share up to 28 per cent. That is the next growth story that we are looking at. Our share in the school and staff bus segment is almost at the level of 28 to 30 per cent.

Q. Aren’t the current permit structures limiting the growth of buses?

A. The (bus industry) is something like a hotel industry. You can’t do without it, and still need it. It does not get affected significantly by the economic downturn. You will find a lot of players jumping into buses. Not that they have a lot of love and affection for it, they are here because it provides great support during the downturn.

Q. Many players have not been able to enter the bus segment. Is it a tough industry to crack?