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.
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.
• 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.
• 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
Email: saurabh.mittal@acganalysis.com
Source: Autobei
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