The Hinduja Group’s flagship Ashok Leyland says it is well equipped to make next generation buses. It even showcased some of these models in the ongoing Auto Expo 2016 such as Hybus (hybrid bus for urban transport) and Sunshine (school bus). The Chennai-based company says it is also ready with BS-VI vehicles that will be rolled out in due course. BusinessLine caught up with T Venkataraman, Senior Vice-President - Global Buses, Ashok Leyland, who talked about the new products and the company’s plans. Edited excerpts:
What is the demand for buses in the market right now?
Between medium duty vehicles (MDV) and intermediate commercial vehicles (ICV), the former used to have 60 per cent (market share) earlier, and the latter 40 per cent, this has not reversed. The reasons are clear. With the expansion of the Metro, people are looking for feeder routes or last mile connectivity, even beyond smaller towns. So, by default, this segment is growing. Customers are interested in the 28- and 32-seaters and, therefore, we have a platform that gives us an option to make products in that segment.
The school bus segment is roughly 30 per cent of our total bus business and we see some trends emerging. We did a survey where all the stakeholders – students, parents, school managements and operators participated -- and asked them about their expectations from a school bus. That is how we developed these buses with sensors, RFID, bus tracking mechanism and internal surveillance camera.
Are programmes, such as under the Jawaharlal Nehru National Urban Renewal Mission, are of help to you even now?
We are doing the usual State transport tenders. We participate, like anybody else, and depending on the price quote and parity, we get our part of the business.
But are you happy with payments, which at times take longer in government tenders?
It is a ‘chicken and egg’ situation. Because of delays, now the companies have started asking for payment of a previous supply before making or supplying a fresh lot. But, once they (government) pay, they ask for immediate supply of bulk order, which can never happen because of inventory constraints. We can’t have inventories based on that.
So, how many buses are pending from your side, and when do you plan to supply those?
Close to around 2,800 buses need to be supplied, and this should happen by the end of this fiscal (March-end) across States.
What new technologies or innovations are you including in your buses?
The Hybus itself was a brand new technology. With so many alternative fuel options, the organisations have to decide where to play – bio-diesel, ethanol, hydrogen, CNG or fuel cells. Most of them are experimenting. But, what is more important is which one would be a reality, and what the government would do?
In the last expo, we (industry) presented the electric vehicles, and everything was announced under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. But, we never saw the execution phase. We still have readiness for these vehicles. We made 100 per cent of electric vehicles in London. So, why should the government have doubt about the capability here? Ultimately, unless you have fewer vehicles that cover the country and learn from the experience of deploying them, ‘Make in India’ may not be a successful programme.
Are you ready with bio-diesel, hydrogen technologies or ethanol?
Yes. But, every programme we work with is on the basis of an assessment of whether ‘this will see the light of the day’. Hence, we have slowed down on some of these programmes. For example, in our understanding, ethanol has some concerns around bacteria that’s thrown back into the air. Many countries have banned ethanol. It’s all a question of which way the government will play.
What are your views on the government’s decision of moving from BS-IV to BS-VI?
The shift to BS-VI is a good thing because we need to enhance power (of the engines), higher capacity, etc. There is a huge dimensional shift that will take place. But, the country will have to have a standard bill (policy) with respect to coaches of buses, permits will have to be regularised, rather regulated, the cost of permits should be meaningful, national permits should be standardised.
How much do you spend annually on the bus business and do you propose to increase it?
Our annual budget (investment) is around ₹150 crore, and any new product we develop costs around ₹60-₹80 crore. For example, the Hybus we showcased here is a ₹90-crore project.