Volvo Buses India looks at slower growth in 2009

Bogged down by the economic slowdown, bus major Volvo Buses India is looking at a slower growth rate for the 2009 calendar year.  The company is expecting a modest 20 percent growth in 2009 even as the overall bus segment is set to witness a decline of 25 percent.

Volvo Buses India expects slower growth in 2009

It may be recalled that Volvo India had recorded a 115 percent growth for the year 2008. The new decision comes about as a follow up of the economic slowdown and financial difficulties the luxury bus makers face owing to the situation. The company had sold as many as 440 buses in year 2008 as against 200 in 2007.

However, the bus maker has realized that tough times have come to the luxury bus segment in India too. It believes that it is very unlikely to see growth as it did last year. To stay on track, Volvo Bus India will need to look at a better performance than the industry segment. It has already bagged a repeat order for 150 buses for inter-city operations from state road transport corporations in the first two months of the current year, said a company senior official.

The company in fact looks positively at the various patterns in behaviour of the Indian customer. The company is also planning to join hands with various civic bodies in an effort to build transport infrastructure through our consultancy services. Volvo Buses India in fact has lined up consultancy services to private and state-run corporations on the need to provide modern bus transport system.

Volvo Bus India sees India as a positive destination and has pumped in  Rs 100 crore in 2008 to set up a full-fledged bus body and chassis plant at Hoskote. The facility is equipped to roll out as many as 1,000 buses every year. Performance wise, the company had been doing extremely well. Volvo  currently has an order book of 200 buses.  With over 20 percent growth projected, it is hoping to sell about 550 buses this year. A 25 per cent production capacity expansion is also on the anvil for 2009.