Sales of buses are expected to increase in FY23.

However, demand for heavy-duty buses increased in FY23, it has yet to return to its former levels. The bus sector is still 10-15% behind pre-Covid levels.

Following the pandemic's impact, the Indian bus sector had a robust sales comeback in FY23. While the light and medium duty (LMD) bus segment reached a new high in volume last fiscal year, the heavy-duty (HD) category has yet to reach a new high, but it is improving.

Following Covid, the truck segment enjoyed a recovery in demand and entered a solid development path. Nonetheless, the bus segment remained much weaker in FY21 and FY22 compared to pre-Covid volumes due to dampened demand from schools, workplaces, and travel segments. However, with the slow reopening of educational institutions and offices in the previous fiscal year, demand for new buses began to improve.

Bus volumes increased significantly in FY23, according to leading bus makers Ashok Leyland, VE Commercial Vehicles Ltd, and Tata Motors.

VECV

"Staff movement resumed in the early half of FY23. It is still at a lower level, but it is improving," said Akash Passey, President of the Bus Division, VE Commercial Vehicles Ltd (VECV).

VECV- With a solid recovery in demand, overall light- and medium-duty bus sales reached a new high of almost 49,500 units in FY23.

In FY23, VECV Commercial Vehicles gained market share in the domestic bus sector, accounting for over one-fourth of the market. Passey stated that the company increased its entire bus segment share to roughly 24% in FY23, up from about 22% in FY22.

The senior officials claim that with bus volumes reaching 15,077 units, VECV became the second-largest bus manufacturer. The total number of buses includes diesel, CNG, and electric vehicles. The new product portfolio, the expansion of the dealer network, and a slew of customer-connect programs all contributed to increased market share.

Tata Motors

"There is a considerable replacement demand from schools and state transportation enterprises; the majority of these has been due for 3-4 years," said Rohit Srivastava, Tata Motors' Vice President, Product Line - Buses.

However, demand for heavy-duty buses increased in FY23, it has yet to return to its former levels. The bus sector is still 10-15% behind pre-Covid levels.

Ashok Leyland

Ashok Leyland, a market leader in the heavy-duty bus segment, increased its total bus volumes to 10,819 units in FY23, up from 3,789 units in FY22.