Before Covid-19, about 80,000 buses were sold annually across the country. Demand for buses has dropped significantly due to the epidemic. Only 15,000 units were sold in the last financial year. During April-June this year, the number was only 5,000. Hence the situation can be understood by this. Industry groups predict that demand will slow in 2021. At the present moment, however, manufacturers are reluctant to make new in covid in product development and the development of new models. Ashok Leyland and Tata Motors say they will wait until the situation improves. However, there is information that companies are likely to focus on the manufacture of electric buses.
On electric vehicles.
ICRA Vice President Rohan Gupta commented that new investments are likely to be postponed for at least another two years when full manufacturing capacity is not utilized. He said only manufacturing companies focused on the construction of electric vehicles would make new investments. The plant, set up by Ashok Leyland in Andhra Pradesh, started production in March this year. The company is unlikely to add additional capacity as domestic demand falls. The UK-based electric vehicle company has invested the largest of Rs 966 crore in Switch. Ashok Leyland will introduce light vans and buses in India in the electric segment.
South Korea leads.
Demand for this specialty has grown significantly as a result of recent corporate scandals. Own vehicles reduce the use of public transportation. Volvo Eicher and Daimler have made it clear that there is no need to increase manufacturing capacity in light of these factors. Tata Motors CFO P Balaji said demand for buses has dropped completely. ‘The company has been waiting a while. There is no idea of increasing the manufacturing capacity of buses. We are phasing out investments in new products. ‘ He said demand will increase after the schools reopen. Remind yourself that buses at road transport companies are getting older. There are only 1.5 buses per 1,000 in India. The figure is 70 in South Korea, 30 in Japan, and 6 in China. The industry estimates that there is a shortage of 11 lakh buses in the country.
Electric buses in full swing in India
Electric rating is expected to reach 8–10 percent of new bus sales in the country by 2025, according to rating agency Icra. She explained that the number of electric buses has been steadily increasing over the past few months despite the public transport system being under pressure. The two-year extension of the Fame scheme, which promotes the use of electric vehicles in the country, will help the sector. Under this scheme, buses up to 7-12 meters in length will be subsidized up to Rs. 35-55 lakhs. In terms of fuel, these buses are five times cheaper than regular buses. In terms of the total cost, these buses are on par with CNG buses due to subsidies. Domestic manufacturing, changes in battery technology, and control of operating costs will contribute to the increase in sales of e-buses. Under the Fame-2 scheme, contractors are opting for a gross cost contract policy as a result of subsidy.
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