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Tata Motors has achieved the Number One position in the domestic bus market by wresting the top spot from Ashok Leyland.
The company was able to achieve this due to strong growth in volumes across segments.
In 2016-17, Tata Motors’ bus volumes (medium and heavy segment) grew by 22 per cent at 18,198 units when compared with 14,917 units in the previous fiscal. Ashok Leyland’s bus sales reported a decline of 10 per cent at 17,725 units against 19,586 units.
During FY-17, the domestic bus market (medium and heavy) grew by eight per cent at 47,262 units. Both Tata and AL dominate the domestic market with a combined market share of about 76 per cent.
Tata officials attributed its strong comeback in the bus segment to good traction in both SRTUs (state road transport undertakings) and private market businesses.
“In FY 16-17, Tata Motors volumes grew by 26 per cent in the IMHCV (intermediate, medium and heavy commercial vehicle) bus category, gaining seven per cent market share,” according to Ravi Pisharody, Executive Director, Commercial Vehicle Business Unit, Tata Motors. Some of the major orders included 1,510 vehicles, representing 82 per cent of the total order, from the Uttar Pradesh government and 100 per cent order each from Rajasthan and Haryana (total: 870 vehicles). Tata also bagged order for 630 vehicles, 40 per cent share of business, from Andhra Pradesh.
In the private segment, apart from private orders of SRTUs, the company secured good volumes of CNG and inter-city buses.
While there is still a wide gap between Tata Motors and Ashok Leyland in the truck segment with Tata having volume edge over Ashok Leyland, there has been a stiff competition between the two in the bus segment.
Between 2012-13 and 2016-17, Tata’s annual bus volumes were higher than Ashok Leyland in three years, while AL sold more than Tatas in two years.
Tata has been beefing up its presence in the southern market, which is dominated by the Hinduja flagship. It has opened bus zones, dedicated bus dealerships that showcase Tata’s range of buses, as also 3S outlets to provide better sale, service and spares experience.
Meanwhile, Tata’s bus exports have also grown. It exported 5,650 buses in 2016-17 against 5,142 units in the previous fiscal. Ashok Leyland reported decline in exports at 4,877 units when compared with 6,135 units.
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