BharatBenz has started to enter into next phase of its journey in India. Daimler Trucks and Buses opened a new bus plant at its Chennai production facility near Chennai, India. The company also revealed new heavy duty & new buses.
Daimler is going to invest about EUR 50 million in to bus business vertical. Daimler is playing with dual brand strategy, one for premium segment and one for Budget Bus segment. Mercedes will be in luxury segment and BharatBenz brand for Budget segment for application like School, Staff, Stage carrier etc. The bus plant covers a total area of roughly 113,000 square meters, is initially set up for a capacity of 1,500 vehicles a year. This can be expanded up to a maximum of 4,000 units. It creates around 300 job opportunity in India. Premium Bus segment is dominate by Volvo, now Scania is also entered into the same segment.
DICV Bus Sales Strategy for Indian & Export market:
"The Indian M&HCV (More than 7.5T GVW) Bus market size is around 40,000 units and it would touch around 70,000 units by 2020. BharatBenz brand will enter into mass market segment of Bus which is having front engine vehicle. Conventionally, low price buses in India are priced in the range of Rs 15-25 lakh and the premium/luxury bus range upwards of Rs 80 lakh. Budget segment is still waiting for correct product portfolio with price range should come around 40 – 50 lakh. This Budget segment is mainly driven by higher Middle and other economical & Technological changes have certainly contributed to the success of this segment. To be successful in Bus segment, DICV should provide comprehensive solutions like Safety, Machine based ticket buying system, Environment friendly vehicle, Tracking system, Wi Fi, Route map on website etc. Tata Motors, VECV, SML Isuzu and Ashok Leyland is having strong hold in some of the traditional segment. Country like India require 6,000 to 7,000 buses every year. Tamilnadu, Karnataka, Andhra Pradesh, Rajasthan & Maharashtra are the major bus markets in India.As per our latest survey people are ready to pay more for comfort and safety. Fleet owners and Govt should support to provide better transportation facilities to the passengers. Some fleet owners are still not ready to give premium services and still using old buses on some specific routes. For example there is no AC bus available on Kota- Ahmedabad route. OEM needs to target Tier I & II cities also and not restricted to metro cities only.
Source: Autobei
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