How Volvo Changes The Way Of Travelling In India?

Until about 2001, bus industry in India lagged miles behind the world’s standards. The buses – deluxe or regular – had major drawbacks compared to other nations. For one, they were a by-product of trucks – built on truck chassis. Reclining seats and stylish paint job used to be the difference between deluxe and regular buses. The scenario changed when Volvo brought about its commercial bus for sale in India. While they were all priced significantly higher than the buses in use, there’s a reason why Volvo still owns over 70% of the market share in the bus industry.

Volvo began with its revolution in the industry by approaching private operators running intercity deluxe buses and asking them to charge a higher price per ticket. The company also got the regulation restricting the length of a bus to 11 meters changed – to 12 meters, at par with the rest of the world. Next, to persuade operators that its costly buses were, in fact, more profitable, the company drew up a lifecycle cost comparison.

The advantages these buses offered were more number of seats and less maintenance. Volvo buses could run 22 hours without maintenance – allowing operators to focus on longer routes. The company also offered a maintenance centre every 400 km, as opposed to the regular practice of one every 25 km. It also offered service support for the entire vehicle instead of just individual parts. These advantages made a Volvo commercial bus for sale more profitable option for operators and also appealed as a transport medium to people with higher per capita income. To reduce the cost, Volvo also entered into a joint venture with Eicher in 2008. An Eicher Volvo bus provided all the advantages of Volvo with the lower production cost of Eicher.

Volvo’s success has been a result of 4 primary factors, which can be noted as:

• A change in strategy: Since the market wasn’t ready for a Volvo city bus, the company brought in its intercity bus.
• Selling the concept: Volvo engaged with everyone from passengers to operators to list the advantages of a deluxe bus for them.
• Using macro changes smartly: At a time of growing environmental concern and increasing congestion, public transport became attractive. It was then that Volvo brought back its city bus.
• Change the game: To outperform the increasing competition, the company produced products increased the number of passengers.

Thus Volvo and Eicher Joint Venture changed the way of travelling in India by offering better and more deluxe products. And the change was so badly needed that despite its increased costs, the company till date has a strong foothold in the Indian bus industry.