Volvo India aims to sell 25 per cent more buses this year as demand for its luxury vehicles grows in one of the world's biggest bus market due to easy finance, rising incomes and rapid development of highways.
The wholly-owned subsidiary of Sweden's Volvo Group expects sale of its high-end air-conditioned buses to increase to 250 units in 2004, Volvo India (bus division) general manager Akash Passey said in New Delhi.
Volvo India started operations about seven years back through its heavy trucks and construction equipment. It entered the bus market in October 2001 and has sold about 300 buses till now.
Passey said exports to Bangladesh started last year with 15 buses. This would be followed with similar forays in other neighbouring countries like Sri Lanka and Nepal.
"We have initiated the process for Sri Lanka and Nepal. In overall exports, we see 100 per cent growth," he said.
Volvo India makes the bus chassis' at its factory near Bangalore, while the bus bodies are made by Azad Group as per Volvo specifications.
"India is one of the world's two largest bus markets after China in terms of volume. We would like to keep our focus on South Asia due to the big potential here," Passey said when asked whether the local unit would be developed as a manufacturing base by the parent company.
Volvo, mainly present in southern and western India, recently introduced a revamped version of the luxury inter-city bus B7R at Rs 52 lakh (Rs 5.2 million) in the northern market.
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