Eicher bets on EV bus segment boost as govt tenders rise
Eicher Motors’ MD and CEO-VECV Vinod Aggarwal, on September 2, said that the bus segment market share has risen from 21 percent in FY22 to 25 percent now.
Eicher Motors’ bus segment market share has risen from 21 percent in the last financial year to 25 percent now and the auto major expects more electric bus orders from the government in the coming times.
Speaking to CNBC-TV18 after the release of the August sales data, MD and CEO-VECV, Vinod Aggarwal, said that Eicher has been increasing its market share in the bus segment constantly this year.
“This year, for the first five months we are at 25 percent. So, we are consistently gaining in the bus segment. For schools, the demands were quite normal in the last four months. However, still, there is not much demand coming from the intercity, tourists and the coaches,” he said.
Eicher has started running EV buses in Chandigarh and has delivered 150 EV buses in Surat, Gujarat.
“The new business model for electric buses is that these buses have to be run by the original equipment manufacturer (OEM). So, we have to take full responsibility for the next 12 years for running these buses, including maintenance and entire infrastructure,” said Aggarwal.
The company expects more EV tenders to come from the government.
“We will see more tenders coming from the government and at the same time private companies for staffing segments and for other smaller routes, there will be electric buses operating. However, there will not be a subsidy from the government for private tenders or routes,” said Aggarwal.
Eicher Motors' total motorcycle sales (Royal Enfield) for August 2022 stood at 70,112 units seeing a growth of 53 percent from selling 45,860 units in August 2021.
According to the domestic brokerage firm Sharekhan, the festive season is going to continue the growth momentum for the auto sector in India, with passenger vehicles (PV) and commercial vehicles (CV) taking the lead in the sector, followed by two-wheeler (2W) and three-wheeler (3W).
For the entire interview, watch the accompanying video
(Edited by : Abhishek Jha)
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