Tata Motors expects its completely built buses business to generate US$1 billion in five to 10 years.
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Traditionally a commercial vehicles chassis manufacturer, Tata has forayed into the coach building business launching two bus brands Starbus and Globus and establishing bus body manufacturing facilities around the world using the franchise model.
Ravi Kant, executive director of the commercial vehicles unit, said: “We already have four now and are looking at five or six more in different geographies.” Tata has ventures in Dakar, Morocco, Spain and South Africa and is in talks with potential franchisees in Turkey, Ukraine, three cities in Russia and Bangladesh.
Local Tata Motor dealers own the coach building facility while Tata provides the technology and keeps the quality under control. The bus chassis is exported and the body is built on-site.
In India, the Pune based company is focusing on the growing demand for rural, semi-urban and luxury coaches whose demand is spurred by rural road construction and national highway expansion. The market is currently grossly under-penetrated where, says Kant, “buses make up only 15% of the domestic commercial vehicles market. But in countries like Russia or China they are up to 45 or 50%.
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By GlobalData“In India we have definite headroom for growth.”
Deepesh Rathore / Tilak Swarup
