snapshot on the bus market in india

Western Auto RACE (P) LTD.,

Snapshot on the Bus Market in India

1

Western Auto RACE (P) LTD., 2

Bus Market – An Overview

•Bus Market –Segmentation

• Regional Players/Share

• HP Range/seating range/length

• Domestic/Export Share

•Trend of Bus Market (Segment –wise)

•Growth Drivers


Buses - Categorization

BUSES

M& HCV

Type I

Intra city

Type II

Inter City Short Distance

Type III

Long Distance

Type-IV

Specials

LCV

Type I

Intra city

Type II

Inter City Short Distance

Type III

Long Distance

Type-IV

Specials

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Buses Market - Segmentation

LCV - >3.5T-12T

• Light commercial Vehicle (LCV)

• TATA, AL, SM, Eicher, Mahindra, FORCE

MCV - >12 – 16.2 T

• Medium commercial Vehicle (MCV)

• TATA,AL, Eicher, Volvo

HCV- > 16.2 T

• Heavy commercial Vehicle (HCV)

• Volvo, Mercedes.

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Market Spread

Range Length

(in m)

Floor Height Seats HP Range Comfort

LCV•5-7,

• 8

Entry+ 3

(900 mm)16-45

70-120Economy, (ndx)

SDX, DLX, ACX

MCV

•11m

•12m

•Entry+ 3 (1050 mm)

•Entry +2 (900mm)

•Entry +1 (650mm)

•Entry+0 (340mm)39-45

120-230

Economy, (ndx)

SDX, DLX, ACX

HCV Up to 15m •Entry + 3 (1050 mm)

•Entry +0 (340mm) 36-64

160/180-230 Economy, (ndx)

SDX, DLX, ACX

Covered under study

• Non Deluxe Bus (NDX) - bus designed for basic minimum comfort level.

• Semi Deluxe Bus (SDX) - bus designed for a slightly higher comfort level and with provision for ergonomically designed seats.

• Deluxe Bus (DLX) - bus designed for a high comfort level and individual seats and adjustable seat backs, improved ventilation and pleasing interiors.

• A.C. Deluxe Bus (ACX) - Deluxe Bus which is air conditioned.

Defining Market Segment – based on comfort levels

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Bus Market Trend for the period 2003-14

0

20000

40000

60000

80000

100000

120000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

No

. of

Un

its

Period (Year)

Bus Market Trend for the period 2003-2014

103590

14% (CAGR)

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Market Forecast Analysis – LCV Segment

10000

20000

30000

40000

50000

60000

No

. of

Un

its

Year (Period)

Trend Of Bus Market 2003-2013 (Segment -wise)

LCV

16% (CAGR)

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Western Auto RACE (P) LTD., 8

Market Forecast Analysis –M&HCV Segment

10000

20000

30000

40000

50000

60000

No

. of

Un

its

Year (Period)

Trend Of M&HCV segment (2003-2013)

M&HCV

12% (CAGR)


Imports are negligible and a few CKD/SKD are being imported from China and assembled in

India.

Sales- Domestic Vs ExportsCompetitive Overview

Market Share

SM - Swaraj MazdaTML - Tata Motors LtdAL - Ashok LeylandM&M - Mahindra & MahindraFM - Force MotorsEM- Eicher Motors

M&M5%

TML50%

AL33%

EM5%

SM7%

Overall Bus Market Share 2008-09

M&M

TML

AL

EM

SM

Exports, 20%

Domestic,80%

Domestic Vs Exports 2008-09

Exports

Domestic

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Bus Market -Growth Drivers

“INCREASING URBANIZATION… ”

The People in rural areas have started migrating to urban areas due to which there is urban congestion and also the cities are expanding leading to which there is a need for intra-city, special application buses like institutions etc and thereby

creating an attraction towards mass transport which is also economical.

Cont…

210

290320

380430

0

50

100

150

200

250

300

350

400

450

500

1991 2001 2006 2011 2016

Po

pu

lati

on

In M

n

Year (Projections)

34 % of Total

Population lives in Urban

25 % of Total Population lives in Urban

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Driver/Govt. Initiative Investments Bus Types

Long distance Intra-city Inter-cityShort distance

SpecialApplications

JNNURM-I( a Govt. Initiative)

A 50000 Crs investment forurban infrastructure

JNNURM-II( a Govt. Initiative)

An investment of 100000 Crs forUrban and rural Infrastructurefor a span of 7yrs.

NHDP( a Govt. Initiative)

Development of 33000Kmhighways all over India

BRTS( a Govt. Initiative)

A part of JNNURM to form adedicated lane for Bus transportsystem

RIDF( a Govt. Initiative)

A investment of Rs 15000 Crsfor improvement of Ruralinfrastructure in terms of roads ,bridges etc.

STU’s replacement Around 40000 vehicles forreplacement this year

Rapid growth of SEZ’sand IT Corporates

As on Nov 2008, India leadswith 250 notified SEZ’s in theworld


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“IMPROVING ROAD INFRASTRUCTRE…..”

The National Highway Development Programme(NHDP) Project of total 33000Kms

This project will enhance the passengers to travel longdistance through roadways (Buses) due to fast, safe and quicktravel with comfort.

Year National Highway (Length in Km)

2001 44,000 (1.3%)

2009* 66,754* (2%)

“INDIA LEADS WITH 250 SEZ’s….”

The increase in the SEZ’s in India is definitely going to increasethe demand for Buses in India for corporate sector movement.

5%

28%

16%

51%

Notified SEZ's in India

East

West

North

South


Source: Ministry of Road transport & Highways

Analysis : RACESource: C & W India Publication

Analysis : RACE

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85%

15%

Roadways Vs Railways

(Passenger)

Roadways

Railways

Mode Of Transport No. of passengers (in Mn) carried per day

Roadways 339

Railways 18

Airways 0.13

The Buses play a dominant role in the passenger transportation among the different modes of transport available in roadways in our country

41%

8%14%

16%

22%

Roadways Distribution

Buses

Cars

Two wheelers

Three Wheelers

Others (Non-motorized transport)

Source: Central Institute of Road transport (CIRT)

Analysis : RACE

Mode of Transport – Distribution in India

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Bus Penetration Across the World

Considering the huge population of India , where Mass rapid transport is the need of the hour , also rails becoming more inflexible -Bus transport emerging as more required form of transportation . Also government is planned ahead to allot a huge subsidy & Urban / Rural development programme to promote Mass rapid transport system & curb the bikes / car movement to reduce pollution & high traffic intensity.

1.50.75

0

2

4

6

8

10

12

No

. of

bu

ses

pe

r 1

00

0 p

eo

ple

Countries

Bus Penetration Across the World Volume Potential of Buses in India

Brazil(considering a developing country as nearest benchmark for India )

1.5 buses / 1000 population

India 0.75 /1000Population ( 9,00,000 Buses)

To be at par with Brazil, India needs

18,00,000 Buses

GAP 9,00,000 Buses

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Thank you

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snapshot on the bus market in india

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