Akash Passey is the founding President of the Bus Division at VE Commercial Vehicles Ltd, a Joint Venture between the Volvo Group and Eicher Motors Limited in India. Before taking up this assignment, Akash served as Sr. Vice President of Volvo Bus Corporation. In a conversation with the Bus Coach India Magazine, he highlighted the major development in the bus market.
Q: What is the current situation of the Indian bus industry?
The pandemic was a challenging situation for everyone, especially the bus industry, where we have never seen anything like this over the last 75 years since independence. All the operators, more or less in the private sector, have restructured their business and loan. As the bus industry recovers from a very tough period, Bus Operators continue to count on us to deliver solutions that address the aspirations of inter-city passengers for safe, luxurious, and globally contemporary coaches. Wherever possible the banks need to overlook and help bus operators start afresh. Hope that at some stage, the banks will realize it and have a change of heart. The bus segment is a very competitive market, and we have a range of products that offer the most compelling proposition across all segments, including inter-city long-distance travel. We will continue to build on our portfolio of technologically advanced and sustainable products that address evolving market needs while delivering an unparalleled customer experience.
Q: How do you see the recently launched Volvo 9600 and intercity coach at Prawaas?
The Volvo 9600 platform merges award-winning bus design, technology, and manufacturing processes with our successful ‘Make-In-India’ journey. As the bus industry recovers from a very tough period, Bus Operators continue to count on us to deliver solutions that address the aspirations of inter-city passengers for safe, luxurious, and globally contemporary coaches. The initial products on this platform are sleeper and seater coaches with dimensions of 15m 6×2 and 13.5m 4×2. The Volvo 9600 is a benchmark in luxury, comfort, and safety. The sleeping coach has 40 berths, but the 15-meter seater coach can accommodate 55 passengers. There are 15.1 cubic metres of luggage space in the seater application and 9.2 cubic metres in the sleeper application. Up to 47 people can sit in the 13.5-meter coach, while 36 people can sleep in the sleeper version.
The Eicher 13.5m Intercity Coach addresses operators’ demand for a mid-premium HD bus and is the latest addition to the Eicher intercity platform. Proven engine performance, class-leading reliability, and improved functionality are some of the hallmarks of the range. The first OEM-built FE Coach with seater and sleeper configuration, the bus holds a VEDX5 engine with a power of 240 hp and torque of 900 Nm. Its 425L HDPE fuel tank promises long uninterrupted trips, while its lightweight construction improves fuel efficiency. The sleek Tall Boy design and layered surfaces of the modern aerodynamics immediately exude aesthetic appeal.
Q: How do you compare your sales volumes of buses during the pandemic, and how is it looking in the coming years?
The bus sales increased to 19,000 units in the first four months of 2022-23, compared to 18,000 for the pandemic-affected financial year 2021-22. In 5 tonne and above, we are likely to see bus sales increase to 60,000 units during the current financial year. Things are becoming better as far as semiconductor shortage is concerned. Hopefully, it will be behind us in the next three months as global demand has cooled off. We are looking to invest around Rs 400 crores to Rs 500 crores yearly for product development and other CV-related work. In the coming years, as infrastructure and road connectivity increase, the demand for buses will increase.
Q: How do you see Volvo- Eicher Bus India market and its opportunities?
Over the last few years, we have been working on a number of products on both the Volvo and the Eicher brands, which are desired when the market comes back. We have a great playing space. We have been very strong in the light and medium-duty segment as Eicher, while at Volvo, we have been strong in the premium heavy-duty segment. With Eicher coming in with the heavy-duty bus, we naturally have common customers. Most of our customers have Volvo comprising 25-30% of their fleet. No manufacturer today offers a complete air-conditioned front-engine luxury bus – seater or sleeper. With this synergy, Eicher, a strong school and staff bus brand, now moves up into the heavy-duty premium space with a front-engine product.
Q: What can we expect from VECV in the future? How do you see overseas export?
Our motto is to shape the future of the Indian bus industry. In India, there is one bus available per 1,000 people. Our nearest competitor China has six buses per 1,000. So, there is a huge gap in public mobility last mile connectivity in India today, leading to two/three-wheelers and cars becoming very important for personal transport. As sales of these vehicles grow, congestion will go into another dimension. We see a great future for the bus industry. So, our focus in the next three to five years is to offer products from the lowest range to the highest range, from mass to value to premium segments, from normal ICE technology with diesel to CNG and electric.
In the domestic market, we will see operators working on providing timely service and expanding their reach, while we give them the necessary support of a superior product that will benefit them on their desired type of application, be it in city routes or inter-city transport. As far as exports are concerned, there is a lot of scope from the Middle East and Africa, but that will happen only 1-2 years from now. Currently, our hands are full with domestic requirements and the existing export orders to other neighbouring countries. Speaking about products, all I can say is that there is more to come, that is for sure, and it is not going to be an articulated city bus.
Q: To what extent the VECV focuses on electric buses, and what are the areas where the VECV needs to work more?
In the Volvo Group, it has been stated that the future is electric worldwide, and 30-40% of our products by 2025 will be electric. The Indian government is pushing for EVs. We are now in the electric space, and we are bidding for all the tenders that are coming in. In the CNG space, we have seen a big shift. About 50% of our products are already CNG in certain categories or segments, which is an important area. We will create a good balance, but we’ll be pretty focused on sustainability. We are working more on the R&D initiative, which aims to improve quality. We recognized the need for business process efficiencies to easily test new ideas, accelerate product verification and validation, and deliver innovative products to market faster at less cost.