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The buses and special vehicles segment grew by 11 per cent in the first nine months of this financial year and if trends are any indication, the Society of Indian Automobile Manufacturers (SIAM) expects the momentum to continue.
Addressing a press conference here today on the first day of the four-day ‘Bus and Special Vehicles Expo' at Hitex here, Mr Sugato Sen, Senior Director of SIAM, said during April 2010 and February 2011, the industry saw total sales of about 42,000 buses and 33,520 light commercial vehicles, registering a growth of about 11 per cent over the previous year.
“With all predictions pointing towards more growth in the inter-city transport through roads, we see the demand for buses growing in the years to come. India has already become the second largest consumer of such vehicles and if the population is any indication, this would only get bigger,” he said.
Input costs rise
However, Mr Sen mentioned that the input costs for the manufacture of vehicles have gone up significantly lately, causing hardships to vehicle manufacturers. This needs to be immediately addressed to ensure that the profitability of manufacturers is not impacted. “If the inflation comes down, it is fine or else manufactures may have to consider passing on costs to consumers,” he felt.
Referring to fuel price decontrol, particularly diesel, he said SIAM has always articulated in favour of decontrol and market driven prices.
“In fact we welcome such as move, as consumers may eventually gain due to fluctuations,” he said.
The Managing Director of Volvo Buses India, Mr Akash Passey, said the second edition of ‘Buses and Special Vehicles Expo' is aimed at serving as a platform for vehicle manufacturers and suppliers and buyers. With each passing year, it is growing in strength.
The demand for buses has grown beyond Tier I cities to Tier II and III cities. This is likely to fuel further growth.
Tata Motors, Volvo, Swaraj Mazda Isuzu, Force Motors, Eicher Motors and a host of others companies are participating in the expo.
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