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Volvo Buses is looking at a larger share in the city bus segment and is planning to invest Rs 200 crore over the next two years on both new products and add capacity at its Bangalore plant.
The company, which has a 75 per cent share in the inter-city AC bus segment (priced Rs 75 lakh-1 crore), is looking to launch medium-segment buses and compete with Tata Motors and Ashok Leyland. Meanwhile, capacity is also being increased by next year to 1,200 units per annum from the current 800 units.
“Next year we will launch more than two models. We're in talks with several state transport corporations for new orders … we are also looking at a larger role in city buses.
However, the JNNURM scheme-based orders going away has led to a dip in demand,” Mr Akash Passey, MD and CEO, Volvo Buses India, said at the sidelines of the SIAM annual summit on Wednesday.
The company expects to grow 35 per cent in 2011-12 at sales of around 800 units. It had supplied 600 out of the 1,100 order for low-floor AC buses under the Government's JNNURM scheme which provided funding for purchase of new and more fuel-efficient city buses across most cities.
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