Challenges ahead in 2011-12 for speeding auto industry

It was like a cruise on an expressway with no traffic and potholes for the Indian automobile industry in fiscal 2010-11. A healthy 26.17 per cent growth in total vehicle sales during the year and the prospects of becoming the world’s sixth largest automobile market overtaking Brazil sounded pretty reassuring.

Yet, the robust economic growth, more focus on rural areas and new model launches, which all helped in driving sales up last fiscal, are not going to be enough to sustain a high growth rate this financial year, cautioned the Society of Indian Automobile Manufacturers (SIAM).

In the wake of rising interest rates, increasing commodity prices resulting in costlier automobiles and a high base effect, the industry body forecast that in 2011-12 the automobile sale growth rate will be down to 12-15 per cent. According to figures released by SIAM, total vehicles sales in India in FY’11 stood at 1,55,13,156 units compared to 1,22,95,397 units in the previous financial year.

“We have ended the year on a reasonably high note. We have reached a very, very strong base after consistent good growth in the last six quarters,” SIAM President Pawan Goenka said.

He said a variety of factors, including good GDP growth, higher spending on infrastructure development, strong consumer confidence, government’s focus on rural areas, moderate price hike by the auto makers despite steep rise in commodity rates and introduction of new models helped the industry register the gains in the last fiscal.

There were 24 new launches in the passenger vehicles segment last fiscal. For the two-wheelers, it was 16. Besides, passenger vehicle and two-wheeler industries saw 40 and seven refreshed versions respectively.

Talking about the outlook for 2011-12, Mr. Goenka observed: “We expect the growth for the industry to moderate and settle down at around 12-15 per cent this year. This year, we hope to overtake Brazil and become the number 6 automobile market in the world.”

The main reason for the predicted moderation in the growth rate is the ever increasing interest rates on auto loans, which is touching nearly 15 per cent in passenger vehicles and 19 per cent in commercial vehicles. Moreover, commodity prices increased by 8-10 per cent and it is expected to remain the same this fiscal too.

“The ability of the industry to absorb hike in commodity prices may not be as high as it was last year and hence would be passed on to consumers,” Mr. Goenka said.

Buying vehicles will thus become a costly affair this fiscal. Already in the beginning of this new financial year, companies such as Maruti Suzuki India and Tata Motors have hiked prices.

In 2009-10, domestic auto sales were driven equally by all the segments. Passenger car sales rose by 29.73 per cent to 19,82,702 units from 15,28,337 units in the April-March period of the earlier fiscal.

SIAM said market leader Maruti Suzuki’s sales during last fiscal jumped by 26.24 per cent at 9,66,447 units, while its rival Hyundai Motor’s sales increased by 13.95 per cent to 3,58,904 units. Tata Motors witnessed a rise of 27.21 per cent at 2,56,202 units.

On the total two-wheeler front, sales in FY’11 grew by 25.82 per cent at 1,17,90,305 units compared to 93,70,951 units in FY’10. Motorcycle sales were up 22.86 per cent at 90,19,090 units against 73,41,122 units in 2009-10. The country’s largest bike maker Hero Honda’s sales rose by 14.73 per cent at 49,26,390 units. Bajaj Auto saw its sales climbing by 35.52 per cent to 24,14,603 units in FY’11.

Scooter sales during the year jumped by 41.79 per cent to 20,73,797 units from 14,62,534 units in the previous fiscal. Commercial vehicle sales increased by 26.97 per cent to 6,76,408 units from 5,32,721 units for the previous fiscal.

Dwelling on the forecast, SIAM said passenger vehicles as well as passenger car segments would grow at the same pace of around 16-18 per cent. Utility vehicles would surge by 12-14 per cent, while the two-wheeler industry is expected to witness an increase of 12-14 per cent over last fiscal, according to Mr. Goenka.

The commercial vehicle segment is likely to rise by 14-16 per cent. While light commercial vehicle would rise by 18-21 per cent, medium and heavy commercial vehicles’ sales are expected to be up by only 10-12 per cent. As for the three-wheeler segment, sales are likely to see a surge of 9-11 per cent.

As far as exports are concerned, overseas shipments from India grew at a robust 29.64 per cent in 2010-11 riding on two-wheelers and commercial vehicles despite a sluggish demand from Europe, one of the main markets for small cars.

According to the SIAM figures, total exports from the country stood at 23,39,333 units in last fiscal compared to 18,04,426 units in the year-ago period.

During the fiscal, commercial vehicles and two-wheelers witnessed good growth in exports. “The only low was the passenger vehicle segment, mainly because of slow recovery of the European market,” Mr. Goenka said.

After the slowdown of 2008-09, many countries in Europe had offered incentives in 2009-10 to customers for buying new cars in exchange of their old ones to help the auto industry. While sales picked up with the incentives, it has again dropped after the funds for the scheme dried up.

India’s total passenger vehicle exports during last fiscal were up by a mere 1.64 per cent at 4,53,479 units as against 4,46,145 units in the previous fiscal. Passenger car exports touched 4,47,403 units against 4,41,709 units in the previous year, up 1.29 per cent.

In 2010-11, India’s largest exporter Hyundai Motor saw a decline of 18.41 per cent at 2,33,069 units. Domestic market leader Maruti Suzuki was a distant second, registering 6.93 per cent fall in overseas sales.

However, export growth in the last financial year was robust in the two-wheeler category, which registered 35.04 per cent rise at 15,39,590 units as against 11,40,058 units in the previous financial year.

The surge in two-wheeler exports was led by Bajaj Auto and TVS Motor Company with sales of their motorcycles and scooters in various overseas markets. Bajaj Auto’s overseas two-wheeler sales rose by 34.11 per cent to 9,72,437 units from 7,25,097 units in 2009-10. TVS Motor Company registered a rise of 38.52 per cent at 2,29,132 units as against 1,65,414 units in FY10.

Domestic market leader Hero Honda saw its bike exports increase by 36.20 per cent at 1,33,063 units against 97,699 units in the previous fiscal.

Commercial vehicle exports also registered a very robust growth of 69.51 per cent during last fiscal at 76,297 units, compared to 45,009 units in 2009-10. While light commercial vehicles saw an export jump at 91.28 per cent at 47,025 units, the medium and heavy commercial vehicles segment’s overseas sales grew 43.31 per cent at 29,272 units in 2010-11.

SIAM also disclosed that three-wheeler exports rose by 55.86 per cent to 2,69,967 units from 1,73,214 units in the previous fiscal.

- PTI Economic Service

Ashok Leyland aims to emerge world’s fifth largest bus market player

New Managing Director Dasari outlines fresh company vision

Ashok Leyland Ltd. of the Hinduja Group is all set to become the world’s fifth largest player in bus manufacturing and the tenth largest in trucks within the next five to 10 years.

This note of extreme optimism was struck by the company’s new Managing Director, Mr. Vinod K. Dasari, while addressing the first press conference in Chennai after assumption of office.

In order to achieve the company’s ambitious targets, he said Ashok Leyland has identified five key areas, namely, Execution, Quality, Innovation, Performance and Efficiency (EQIPE). The other major goals are to get the coveted Denim Award as well as its greater focus on the branding exercise.

Investing for the future

As for its sales performance, Mr. Dasari said that for the first time the company has sold 11,000 units in March 2011, and for 2011-12 it is targeting sales of over one lakh vehicles in the domestic market compared to 94,000 units in 2010-11. In order to meet the growing demand for its vehicles, Ashok Leyland will continue to invest on expansion of its various facilities, including the Pantnagar as well as Alwar units. It also has plans to make huge investment on the Neptune engines as well as develop the state-of-the-art new cabin. With all this, Ashok Leyland vehicles will have a new transmission, new engine and new cabin.

With a view to bringing the latest technology through its new vehicle models, the company will double its expenditure on R&D activities. It is also investing on the future growth in view of the growing competition in the Indian commercial vehicle market.

However, he made it clear that maintenance of profitability will remain the core value of Ashok Leyland. Since 75 per cent of the vehicle cost goes into raw materials, the company will adopt a special strategy on lean management. In the last six months, the company launched new vehicle models and their variants, and within the next 18 to 20 months, all the trucks will be made on the U-Truck platform.

Further, there are plans to double dealership outlets from 170 to 350 in two years. With this expansion, the dealership will be in a position to attend to a service call within four hours.

Referring to export prospects, Mr. Dasari said AL is looking at opportunities for partnerships at the global level. Currently its vehicles have ready market acceptance in Sri Lanka and the Middle-East countries, and the company focus has now shifted to Africa, Latin America, CIS countries, etc.

Earlier, in his introductory remarks, Mr. Dasari pointed out that the three main factors which encouraged him to join the company are its value system, robustness of the products manufactured, and the commitment and dedication of its workforce. However, Mr. R. Seshasayee, the current Executive Vice Chairman, continues to be his mentor.

Foton to set up Rs. 1,676-crore truck plant in India

China’s leading truck manufacturer Beiqi Foton Motor has announced that it has signed a memorandum of understanding (MoU) with the Maharashtra Government to set up a truck manufacturing facility in India. Beiqi Foton intends to invest Rs. 1,676 crores in this venture.

The signing of the MoU and the investment to be made in India would serve as a key step for the truck maker to implement its strategies and is an important move for its globalization drive, said a company statement.

The plant will be producing heavy and light trucks according to the local market demand. The parts and components will be mainly sourced from local producers.

“The Indian commercial vehicle sector is the world’s fourth largest and is expected to grow rapidly. Foton is the first amongst the Chinese auto makers to invest and set up facilities in India,” the Beiqi Foton Motor President, Mr. Jinyu Wang, said. “With an investment outlay of Rs. 1,676 crores for Indian operations, Beiqi Foton aims to create products suited to meet the needs of Indian environment and conditions.”

With these plans, Foton looks at creating tremendous business opportunities for local manufacturers. The process will also generate employment and growth opportunities for the region, more so since the core vision of the company is localisation.

The Beijing-based company exports to over 100 countries across the world and operates six manufacturing plants in China, apart from running knocked down (KD) operations in Russia, Iran, Pakistan, Vietnam, Indonesia and Kenya where vehicles are assembled.

MAN-Sinotruk joint truck brand for China and other Asian markets

MAN and Sinotruk have unveiled a new joint truck brand for China and other growth markets in Asia, the Middle East, Africa and the Commonwealth of Independent States (CIS). Known internationally as SITRAK, the truck brand will be marketed under the Chinese name Shandeka in the home market of China. With three stylized ginkgo leaves, which symbolize endurance and vitality in Asia and act as the logo, the brand name stands for the good partnership between MAN and Sinotruk.

While sales in China will be exclusively via Sinotruk, export markets will be served by the existing sales networks of MAN and Sinotruk. MAN will also participate in the sales in China as a result of its direct interest in Sinotruk. The companies expect yearly sales to total 200,000 trucks by 2018, of which 160,000 are for the Chinese market.

Sinotruk and MAN showcased the new brand’s first product, the SITRAK T7H, at their joint trade fair stand in Shanghai. The heavy-duty T7H truck combines Sinotruk’s components and MAN technology. The T7H is due to go into production at the Jinan site in China in December next. Chinese customers will already be able to order the new truck in the first six months of 2012, while sale for export is slated for the second half of 2012.

Sinotruk and MAN are co-operating on two levels: provision of capital and transfer of technology and management expertise. MAN invested Euro 560 million in Sinotruk in 2009 and has a direct interest in the Chinese manufacturer with a 25 per cent stake plus one share. The transfer of technology and management expertise is based on a contract signed by both partners regarding the granting of technology licences.

MAN went into partnership with the Heavy Duty Truck Corporation (today Sinotruk) way back in 1983 for the construction and licensing of Steyr trucks. Sinotruk and MAN are thus united by a long history of working together. Trust is the very backbone of this co-operation.

“In just a short period of time, Sinotruk and MAN have developed a new truck brand, which we present to you together today at the Shanghai Auto Show. This day is a milestone for Sinotruk, since SITRAK will now enable us to offer our customers a Chinese truck with state-of-the-art technology,” said Chunji Ma, Supervisory Board Chairman of Sinotruk.

MAN CEO Dr. Georg Pachta-Reyhofen said: “With SITRAK, we are adding a key element to our BRIC strategy. This heavy truck that is ‘made in China’ complements MAN’s product and brand portfolio perfectly. Thanks to the excellent partnership with Sinotruk, we are able to take another important step in MAN’s global expansion today.”

Sinotruk is one of the largest truck manufacturers worldwide and is one of the few producers in China that can look back on a 50-year history. Sinotruk is considered a heavy truck specialist, especially in China, but has significantly expanded its activities in recent years to include light commercial vehicles and construction vehicles. In 2010 the CNHTC Group generated revenue of Euro 8.05 billion. It also sold around 200,000 trucks, 60 per cent more than in the previous year.

MAN Truck & Bus AG, headquartered in Munich, is the largest company of the MAN Group and a leading international supplier of efficient commercial vehicles and innovative transport solutions. In fiscal 2010 the enterprise, with around 31,000 employees, posted sales of more than 55,000 trucks and over 5,400 buses and bus chassis of the MAN and NEOPLAN brands worth 7.4 billion euros.

Daimler receives RBI nod for financial services

Daimler AG has received approval from the Reserve Bank of India to set up a non-banking finance company for its financial services business in India. The new company, Daimler Financial Services India Private Ltd., will be a 100 per cent subsidiary of Daimler AG and is expected to be operational in the third quarter 2011.

“With business activities in over 40 countries, Daimler Financial Services is one of the leading automotive financial services companies in the world. Every second passenger car and every fourth commercial vehicle from Daimler is financed or leased by us. India is one of the fastest growing automotive markets and the Daimler Group has high expectations from this market,” said Richard Howard, Member on the Board of Management of Daimler Financial Services AG responsible for Africa and Asia/Pacific.

Daimler Financial Services India will support the sales of Mercedes-Benz cars and Daimler trucks as there is a large demand for financing solutions in the market. It will initially invest upwards of $50 million as part of market entry.

“By providing innovative and customized finance and insurance solutions to dealers and customers, we intend to enrich the ownership experience of Mercedes-Benz and BharatBenz branded automotive products, under the Mercedes-Benz Financial and BharatBenz Financial labels”, said Mr. Sidhartha Nair, Managing Director, Daimler Financial Services India Private Ltd.

The product range of the new company will include financing, leasing, insurance and dealer financing for Mercedes-Benz passenger cars at market launch. The commercial vehicle finance products will be offered, for the newly developed Daimler truck brand for the Indian market, BharatBenz, in 2012, after the start of truck production in Oragadam, close to Chennai.

Daimler Financial Services AG has shown strong growth in the three other “BRIC markets”. Until year-end 2010, the contract volume of Daimler Financial Services in Russia increased by 25 per cent compared to the year before. In Brazil the increase was 35 per cent and in China even 100 per cent.

Kalyani & Meritor celebrate 30 years of successful partnership

AAL rolls out one-millionth axle produced in India

Automotive Axles Ltd. (AAL), a joint venture of the Kalyani Group and Meritor Inc., celebrated its 30th anniversary with more than 1,000 customers, suppliers and employees attending the function held at its manufacturing facility in Mysore.

“Because of the trust reposed in us by our customers and the value recognized by our supplier partners, we have been able to achieve more than we anticipated when we began this joint venture 30 years ago, said Mr. Baba Kalyani, Chairman, AAL. “This partnership has enabled us to provide evolving drivetrain solutions highly customized for the India landscape. We’ve played an extremely important role in the modernisation of the Indian commercial vehicle industry”.

Established in 1981, AAL, with its manufacturing facilities in Mysore, is the largest independent manufacturer of rear drive axle assemblies in India. The company produces a wide range of rear drive axles for commercial vehicles ranging from six tons to 35 tons GCW; S-Cam actuated quick change air brakes for commercial vehicles and trailer axles for 10 tons to 13 tons GVW. Marketing and field service support is provided by Meritor HVS (India) Ltd., also a joint venture between Kalyani and Meritor.

“India’s growth in the commercial vehicle and industrial markets has been significant,” said Mr. Chip McClure, Chairman, CEO and President, Meritor, Inc. “The ongoing development of this country and the aspirations of its people provide us with the opportunity to serve these markets. We value our relationship with the Kalyani Group and are proud to say it continues to be one of our most successful joint ventures.”

As part of the celebration, AAL displayed its 1,000,000th “golden axle” produced in India as a symbol of the strength of the partnership. The axle will be retained by the company as a memento.

On the occasion, Mr. Baba Kalyani announced launch of four new products and outlined the company’s ambitious growth targets.

Two-speed axle

AAL announced launch of the first “green axle”, the new two-speed model MS 13 240. The axle is ideal for a range of commercial vehicles, including 4X2 dump applications as well as 4X2, 6X2 and 8X2 haulage vehicles. Full-scale production of the MS 13 240 series will start in mid-2011.

“Using proven drivetrain technology, we’ve developed a new two-speed axle for India that increases operational efficiency with extreme grade capability,” said Mr. Ashok Rao, President, AAL. “With access to a global network of expertise, we are developing new ‘green’ products engineered to provide our customers with axle solutions that offer energy efficiency, superior performance, and reliability.”

AAL’s new two-speed axle is customized for local operating conditions, while using proven technology developed for Meritor axle applications in various regions of the world, providing AAL customers with global quality at a local price. According to Mr. Raghunathan, Vice President, Meritor India, the MS 13 240 axle not only provides increased fuel efficiency but also improves turnaround time.

The MS 13 240 is approximately 6-8 per cent more fuel efficient than a conventional axle configuration and offers traction-on-demand allowing the driver to effectively manage difficult gradients. The multiple ratio design facilitates fast track road infrastructure and hill climbing. The axle is available in nine ratio sets ranging from 4.10/5.59 to 7.17/9.77.

Other new products

AAL is also planning to launch hub-reduction axles which are largely used in heavy duty applications like in minning and construction trucks. The third important new product development has been for Defence applications. AAL is a leading supplier of axles for Defence and military trucks.

Mr. Kalyani said: “We are the largest supplier of axles for the military segment in India. More than 80% of the military vehicles use our axles. Meritor has strong technology and capability on the military and defence applications.”

Globally, Meritor is the preferred drivetrain technology partner for major Defence applications worldwide. “Meritor is highly committed to the military business and intends to make a significant investment in engineering and prototype development to support these programs,” said Carsten Reinhardt, President of Meritor’s Commercial Vehicle Systems business. “Our unique capability in developing specialized drivetrain solutions makes Meritor the right partner to deliver the technology required for highly advanced, next generation vehicle platforms.”

Finally, the fourth important product launch is axles for off-highway segment. The company is looking at the Indian market for grader axles, loader axles and other products. AAL has started with assembling axles for Catepillar in India.

In January this year, AAL rolled back the brake business into the JV. Apart from the facility in Mysore, it has established another facility in Pantnagar for manufacturing brakes systems. The new plant has capacity to manufacture 40, 000 brake systems per month. Currently 12 per cent of AAl’s total business comes from the brake business, and the target is to increase this further. In the future, the company plans to introduce advanced solutions in drum and disc brakes too.

For the current year, AAL has set a target of Rs. 1,100 crores in turnover and hopes to double it by 2015. The company plans to set up a greenfield facility for manufacturing axles, and a decision regarding this will be announced soon. The Mysore plant is running at full capacity.

Globally, the trailer axles and aftermarket business are key components of the overall business of Meritor. The company plans to focus on both these segments in India too. It already set up an independent division to handle Commercial Vehicles Aftemarket at Meritor India. A state-of-art warehouse is being built in Pune to handle the aftermarket business.

AAL’s successful partnership with AL

Automotive Axles Ltd. (AAL) has enjoyed a very long and successful relationship with Ashok Leyland. There is mutual respect between the two companies.

Mr. Baba Kalyani, AAL Chairman, in his inaugural remarks, made a special mention of Mr. Ram Shahaney, Chairman Emeritus of Ashok Leyland, who was his mentor when he started AAL. “Ashok Leyland gave us tremendous support from the initial years till today, and I am very happy that Mr. Vinod Dasari is here with us representing Ashok Leyland at the highest level”.

Till 1980 AL was manufacturing axles in-house. In 1981, the company launched the first trucks with axles supplied by AAL.

Mr. Vinod Dasari, Managing Director of Ashok Leyland, said: “AL is the largest customer of AAL, and at the same time AAL is the single largest supplier for AL. We have grown together over the last 3 decades. In every single new vehicle that AL has launched, AAL was the first axle of choice and continues to be so. Today, the first of the U-Truck range, all of them, have been launched with Meritor axles”.

Mr. Dasari also observed: “In 2007, when AL acquired AVIA in the Czech Republic, we wanted to do so some localisation, and the first thing we did was to change the axle. Today axles are supplied by AAL directly to AVIA. Avia Ashok Leyland also supplies chassis to Smith electric vehicles of the US, the largest manufacturer of electric vehicles, and all these chassis carry a Meritor axle supplied from India”.

AL has set an ambitious target of becoming the global top 10 in trucks and buses in the next 5 years. “This requires us to double the number of vehicle we manufacture over the next 5 years, and we expect that a majority of these vehicles will be fitted with AAL axles”, he added.

“Meritor’s vision is to be the recognized leader in providing advanced drivetrain, mobility, braking and aftermarket solutions for the global commercial vehicle and industrial markets. India will play a key role in our achieving that vision”

- Mr. Chip McClure, Chairman and CEO, Meritor Inc.

At the 30th AAL anniversary function, Mr. Chip McClure thanked all the customers and suppliers on behalf of Automotive Axles and on behalf of Meritor for the long association and the mutually beneficial journey. “We have come this far only because of our customers and suppliers and also because of the strength of the partnership we have shared with the Kalyani Group over many years”, he said.

“We value this partnership, and the others that we have around the world, that have enabled Meritor to grow in important markets around the world. We look forward to many more years of association and success in the Indian market and the global market”, Mr. McClure added.

Talking on Meritor’s perspective of India and its long association in this region of the world through joint ventures, Mr. McClure said: “India is one of our most important markets outside of North America. The opportunities arising out the development of this country and the aspirations of its people are significant. We see excellent opportunities in India in all the segments that we present globally. The recognition of India as a key market is not new – it actually dates back to our Rockwell heritage. This recognition drove us to direct resources to this market knowing that some of the investments would not provide immediate results or returns”.

“We are actively working in several segments in India. On-highway is our largest segment and will continue to be so in the days ahead. We have worked over the years to provide platforms that address various price-performance points for truck and bus applications. I am proud to say that at AAL we manufacture the most diverse range of axle platform (from C100 which uses a 12” to 160 which uses 18”) in all of Meritor’s sites”, Mr. McClure added.

He observed: “AAL is an integral part of our global gear engineering network. The engineers from AAL work in close co-operation with our engineers in the US to develop bus application gear sets for India and China.Mysore is the gear manufacturing hub for Europe”.

Talking about the new products, Mr. McClure said: “We are now launching the two-speed axle which has been very successful in Mexico and Brazil. Apart from providing our customers with 6-8% fuel economy, the India version is fitted with a patented fail-safe shifter mechanism to eliminate the learning curve for drivers. We are also launching the performance heavy duty hub reduction single and tandem axle shortly. For the bus segment, we will launch the 177 axle for the high horse power engines, ideally suited for heavy retarder loads”.

On the brake business, he said: “We have rejuvenated our brakes strategy for India. This has involved the launch of a new facility in Pantnagar which will be followed by others. There will be more to come on new products in drum and air disc brakes. Incidentally, we were the first to launch completely indigenous air disc brakes in India”.

Meritor is aggressively expanding its off-highway business. “We are working to build our presence in the off-highway segment in India. We are in the process of developing drivetrain solutions for rough terrain cranes, all terrain cranes, terminal tractors, fork trucks and motor graders. Finally, in our military business, we have a host of new drivetrain and suspension products in the process of being launched in next 12 to 24 months”, added Mr. McClure.

As part of its business strategy, Meritor plans to continue investing in people, products and processes. Meritor’s vision is to be the recognized leader in providing advanced drivetrain, mobility, braking and aftermarket solutions for the global commercial vehicle and industrial markets. India will play a key role in achieving that vision.

Specially designed Tata buses for city transport

Roads are the lifeline of any city, especially in India where a major part of passenger traffic is carried by roadways while a small percentage use rail transport. If this lifeline starts choking because of traffic jams, the city itself faces a crisis. Along with rising pollution, parking problems also get aggravated with the growing risk of road accidents. Much of the traffic congestion is due to a significant increase in vehicle population. People shun public transport, preferring to travel in their own vehicles. This is because of the unclean and inefficient public transport system available in most cities.

The problem would get solved when travellers switch to a pubic transport system resulting in reduced congestion. This can be done by introducing a clean and efficient public transport system which adds to the convenience of the commuter.

In most developed countries, the penetration of buses is mugh higher than in India. We do not have an adequate number of buses to support the huge population. The Centre and many State Transport Undertakings are making efforts to modernize the mass transport in major cities of India. Bus manufacturers have agreed to co-operate with the Government to provide a clean and desired means of transport for daily commuters.

Tata Motors has joined hands with the Government and introduced many buses for daily urban transport.

India is a diverse country with differing needs in different parts. Each city may have a different need of a bus for city transport. These are usually affected by factors like climatic conditions, pollution levels, the number of people commuting daily, etc. Hence Tata Motors has specially designed options for City Buses. These are available in varied fuel options – diesel, CNG and also the CNG electric parallel hybrid bus, the latest offering.

The City Bus has been specially designed keeping in mind the comfort of city commuters. Low-floor and broad doors facilitate quick and easy boarding and alighting for passengers, making everyday travel hassle free. The Ultra Low Floor options are built for convenience of people who are differently-abled and may face difficulties when travelling on public transport. The City Buses are spacious and can seat up to 54 passengers, providing optimum comfort for even those who are standing. Moreover, shorter halt-times due to ease of embarking and disembarking saves time and fuel giving better run-times and improved economy to the bus operators.

Robustly designed buses even offer better resale value. Clean and contemporary in looks, the City Bus has brought about an image makeover for public transport by making intra-city travel convenient and more dignified than ever before.

These buses can be used in a BRTS provided with a fleet management system, including GPRS / GPS system, display / destination board, smart card reader and door control with RF tag, display at the bus stand with a back server, driver kit with bus controller and display system on the bus, and skills upgradation for drivers.

Some of the cities where Tata Starbus is being used for daily commute are Mumbai, Delhi, Kolkata, Ahmedabad, Indore, Bhopal, Jabalpur, Kota, Udaipur, Jodhpur, Nagpur, Raipur and Aurangabad.

The City Bus is available in a comprehensive range – 20 seats to 67 seats. With several options present in the non-AC and AC categories, there are different floor-height and step options in the range as well. These are available in BS III and BS IV specifications in diesel, CNG and CNG-electric hybrid options.

At the forefront is Tata Motors where they take the lead to deliver environment-friendly buses with an aim to have a cleaner and greener world.

For details, log on to www.buses.tatamotors.com or write to businfo@tatamotors.com

Neeta Tours & Travels buys Mercedes-Benz buses

Mercedes-Benz India has announced a significant deal comprising 30 units of 2-axle and 10 units of 3-axle coaches with Neeta Tours & Travels. The first lot comprising 11 buses was delivered at the Mercedes-Benz India plant at Chakan, Pune.

Emphasizing the ‘Travel with the Star’ experience, Mr. Peter Honegg, Managing Director & CEO, Mercedes-Benz India Ltd., handed over keys of the vehicles to Mr. Anil Savla and Mr. Sunil Savla of Neeta Tours and Travels. The coach incorporates the hallmarks of the Mercedes-Benz brand, including high standards of safety, comfort, reliability and quality.

Commenting on the deal, Mr. Sunil Savla, Owner, Neeta Tours & Travels, said: “Our current fleet of Mercedes-Benz buses cumulatively has excellent on-road performance and has had better revenue realisation than other coaches. This has convinced us in our decision to purchase the new set of 40 more Mercedes-Benz buses; with this our fleet of Mercedes Buses will go to up to 60. The customer feedback has been extremely positive for these buses and the reliability and comfort of a Mercedes-Benz bus remains unmatched.”

Speaking on the occasion, Mr. Peter T. Honegg, Managing Director & CEO, MBIL, said: “Mercedes- Benz has a strong legacy of 125 years and we are the pioneers and the largest bus manufacturers globally with the widest portfolio of product offerings. With our close focus on the ‘Travel with the Star’ experience, it has been our constant endeavour to make every journey a unique experience.”

“It is a pleasure for us to be associated with a globally celebrated and trusted brand like Mercedes- Benz. It has been our endeavour to provide the highest level of comfort and luxury to our customers and with our association with Mercedes-Benz we are confident of providing the same and staying ahead of our competitors,” Mr. Anil Savla of Neeta Tours and Travel added.

The Mercedes-Benz bus embodies the brand’s global aspirations, displaying a blend of premium quality, outstanding cost-effectiveness and the highest safety standards. Apart from these attributes, Mercedes-Benz bus also comes with the assurance of a strong after-sales service network. The buses are built on the robust Mercedes chassis- 0 500 R series. Apart from the suave exteriors, the plush and airy interiors sport well designed passenger seats with amenities like personalized speakers, lights and AC controls; the bus also features state-of-the-art suspension. The superior technology of Mercedes-Benz buses ensures an efficient performance and optimum cost of running which will result in a satisfactory vehicle ownership experience for Neeta Tours and Travels.

Mercedes-Benz is a pioneer in the automobile industry by introducing the latest and the best in terms of technology, design and styling, comfort and safety. Mercedes-Benz is committed to introducing exciting products that ensure customer and commuter delight with a strong focus on providing world-class luxury experience.