With cheaper Divo, TaMo aims at Volvo

Tata Motors has thrown the gauntlet at Volvo.

The second-largest bus manufacturer in the world after Daimler Benz is aiming for a 50% market share by 2015 in the super luxury bus segment, where Volvo rules with a 60-70% market share.
These buses cost between Rs60 lakh and Rs90 lakh.

On Wednesday, Tata Motors launched Divo, priced at Rs66 lakh (ex-showroom Thane) for the western region.

“We are looking at a scooping up half of this market in three years,” said Ashish Tondon, head - marketing  - buses for Tata Motors.

Growth in the bus segment is seen flat this fiscal due to slower orders from state transport undertakings under the Jawaharlal Nehru National Urban Renewal Mission.

According to Society of Indian Automobile Manufacturers Association,  the industry sold 43,000 buses this year.

However, luxury coach segment has been growing in double digits with orders coming from private fleet operators. The overall super luxury segment remains a niche market as of now with 40-50 buses sold in a month or 600 buses a year.

Tata Motors is planning to sell around 150 in the first year and 500 down the road.

“Though we are little late to enter this segment, we are hopeful that a Tata brand will work in our favour,” said Ravi Pisharody, president - commercial vehicles business unit for Tata Motors.
According to the company, Divo is priced at least 10% cheaper than existing products in the market. To further expand the super luxury bus range, Tata Motors is also planning to launch a multiaxle super luxury coach by fiscal 2014. The company showcased the product during the Auto Expo in Delhi in January this year.

“Tata Motors offers value for money on their luxury buses. It can surely be a tough competitor in this segment,” said an analyst from PINC Research. Along with Divo, Tata Motors also launched Starbus Ultra for the intra-city requirements. The company launched Divo in December last year for the Northern region.