Demand Outlook on Bus Market in India by 2024-25

Demand Outlook on Bus Market in India by 2024-25

  • June 2017 •
  • 283 pages •
  • Report ID: 5075847 •
  • Format: PDF
Bus is an important medium in public transportation and rapid urbanization of metros are only likely to increase demand for buses in the overall transportation portfolio in a given city.
Buses is an important mode of transportation for inter-city, intra-city related short to long distances routes. State Road Transportation Undertaking (SRTUs) and private fleet operators own over 66% of the total buses in the M&HCV segment. Schools, Offices, Airports are some of the other segments where buses are used for shorter transit. Improved road connectivity, increasing aviation infrastructure, smart cities, growing schooling infrastructure across metros, tier 1 and tier 2 cities, indicate a promising future for the demand for buses. During 2015-16, the M&HCV passenger carrier segment, classified as maximum mass exceeding 7.5T but not exceeding 12T and maximum mass exceeding 12T but not 16.2T grew by 19.5%, selling 43,885 buses as compared to negative growth of 4.83% (36,837 buses) and 17.48% (38,709 buses) during FY15 and FY14 respectively.

The upward trajectory for demand for buses has started and its anticipated that the growth will continue in the years to come, this growth will be fuelled by both, new demand and replacement demand. Figure below, indicates the average ageing of bus fleet in different SRTUs, which clearly indicates huge upcoming replacement opportunity.With overall recovery in the economy and expected new orders by SRTUs, the bus sector is likely to witness strong growth. Within the segments, the M&HCV segment is likely to outperform on account of JNNURM orders, revival in demand from Private Carriers and low-base effect. Apart from existing order, the domestic bus sales are also likely to benefit from a) Government’s recent proposal of opening up the passenger transport sector to private players, b) higher allocation towards urban development projects and other initiatives such as “Smart Cities” etc. InfraInsights research report will provide a detailed analysis on emerging demand from different end user industry segments. Report will be data intensive and will help companies to plan their business in the years to come.