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Volvo Buses diversifies in India, eyes new revenue streams

Volvo Buses diversifies in India, eyes new revenue streams
PTI
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First Published: Tue, Mar 10 2009. 02 48 PM IST
Updated: Tue, Mar 10 2009. 02 48 PM IST
Bangalore: Faced with slowdown in growth, Volvo Buses India announced a foray into the consultancy services business expecting 50% of its revenues to come from engagements other than sales in five years.
“Volvo Buses India sold 440 buses in the country in the calendar year 2008, up from 200 in the previous year,” its Managing Director Akash Passey said.
But for 2009, the company is expecting a sales growth of 20%.
Passey said that the company expects soft offers — consultancy services, activities pertaining to managing customers’ fleet and any engagement other than sales of buses — to constitute 50% of its total annual revenues by the end of five years.
Speaking on the consultancy business, he said that the company is looking for partnerships and collaborations with civic and transport authorities to decongest cities, help create a more efficient system and take up projects to provide sustainable solutions customised for a city’s transportation needs.
Under this initiative, global Volvo experts would soon interact with Bangalore Metropolitan Transport Corporation.
“The Central and the State governments are committed to build transport solutions that meet growing urbanisation needs,” Passey said adding: “We are well poised to partner with various civic authorities in building transport infrastructure to bring in tomorrow’s solutions today.”
He said Volvo currently has orders to deliver 200 buses in India, including around 150 inter-city buses from state road transport corporations secured in the last four weeks.
“We are focusing more on public transportation system,” Passey said, adding that the company would increase its production capacity by 25% this year.
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First Published: Tue, Mar 10 2009. 02 48 PM IST