Volvo, know for it commercial vehicle is planning to launch a new segment for the emerging market across global, including India. Volvo has yet to name their mid-range brand which they will do later this year. Volvo targets to launch its mid-range busses first in India by 2014. Theses busses will be manufactured in their Hoskote factory, near Banglore. The factory currently as a manufacturing capacity of 1,800 buses, which it is planning to increase to up to 2,500 units by next year and soon raise it to 10,000 units annually. These busses will also be exported to countries in Asia, Latin America and South Asia.
Volvos has made a remarkable presence in the commercial market segment in India from the last 10 years. Known for its luxury and safety Volvo has changed the way we travel on short intercity routes or long highways. With this new brand Volvo expects to gain a 25% gain in the market share in this segment. The price of these buses can be from 40-60 lakh, which fits perfectly in the mid-range segment of the Indian market where the low end buses are in the range of 15-20 lakh and the premium one are above 70 lakh.
Looking at the current growth in the Indian bus segment other premium bus brands like Scania and Mercedes are also planning to invest in the Indian market. Looking at all these giants entering the Indian commercial market, certainly increases competition to manufactures like Tata and Ashok Leyland.