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NextGen Bus Coaches© for Asian Markets

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Presentation on theme: "NextGen Bus Coaches© for Asian Markets"— Presentation transcript:

1 NextGen Bus Coaches© for Asian Markets
Presentation for Asia Motor Works Ltd (AMW) By Commercial Vehicle Design Solutions (VCDS) And TEAMPro UK and India

2 Idea AMW is a start-up Commercial Vehicle manufacturer company promoted by Essar Group. AMW is developing a heavy truck for Indian market and is interested to develop an intercity integrated Coach (NextGen Bus©) which can compete with imported Coach like Volvo. CVDS and AMW can work together to develop the Chassis suitable for the Coach and also design variants of Bus Bodies suitable for NextGen Chassis©.

3 Bus Status… Obsolete Technology Buses made in India, compared to Europe which makes ‘Coaches’ famous for its travel and tourism industry growth. Volvo introduced world class Intercity Coaches in India based on European design, imported kits and local assembly, But prices high at % of Indian Bus prices, leaving tremendous potential demand untapped. Current market in Low-end Bus is 99% dominated by Buses built on truck-type chassis supplied by Tata & Ashok Leyland. Pose tremendous limitations on Bus design, speed, noise, driving operations and traveling comforts to driver and passengers.

4 … to Coach Opportunity Income & Lifestyle of Indian consumers have doubled in last 7 years, will double in next 5 years. Look forward for World Class Mass Road Transportation system. Imminent Business Opportunity to develop and market cost effective technology-driven Bus Coaches suitable for Indian roads for the Mid & High segment customers. No Indian player in this market segment at present.

5 Technology Leadership
Buses are designed by Bus / Coach Body Builders, based on the truck-like Chassis, supplied by Ashok Leyland and Tata. Specialized expertise and experience is required to design, manufacturer and market NextGen Chassis© and NextGen Coaches© on World Class technology, tailored to Indian / ASIAN Road conditions. Such technology is not available with any Indian Manufacturer at present. Technology Leadership will give a kick-start to AMW.

6 Strategic Needs AMW has set up a Large Plant at Bhuj to manufacture Commercial Vehicles. AMW is looking forward to manufacture Chassis suitable for NextGen Bus Coaches© for Indian and ASIAN markets. World Class Design and Technology is required. CVDS can help AMW in acquiring & designing NextGen Chassis. 5-6 Bus Body Builders have shown interest and have the potential of making NextGen Coaches© on NextGen Chassis©. Others will follow the Leader. CVDS can help Body Builders with NextGen Body Design with Coach differentiation features for each Body Builder.

7 Strategic Needs Cost of NextGen Bus Coach is suggested to be somewhere between Indian and European (Volvo) Coaches. Design Project cost can be split up between AMW and participating Bus Body Builders through Strategic Partnerships. A detailed Techno-economic Viability Study will spell out detailed Strategic Options in Technology, Partnerships, Market Potential, Marketing, Funding and Customer Financing. Operations Team will need to be formed for manufacturing, marketing and financing NextGen Coaches.

8 NextGen Coach Development Cost
Rs Crore Chassis Design (Three variants: High, Medium & Low-end)……… 2.00 Chassis Prototype Building and Validation…………………………… 1.50 Bus Body Design………………… Bus Prototype Building and Validation……………………………. 1.00 Project Management, Marketing, Travel & Misc. cost………………… 1.00 TOTAL Project Cost………………

9 Profitability & Viability
RoI: 15-20% Profit is targeted from NextGen Coach© Development Project. Payback Target: 5 Years. Market Share Target: 10–15% over next 5 Years. A Detailed Techno-economic Viability Study is recommended by TEAMPro to achieve Business Objectives cost-effectively, before competition crops in!

10 Technology Proposal CVDS to provide the Technology for design, development, validation & testing of the vehicles. CVDS & TeamPro to assist in marketing the Bus Body Technology to Indian Manufacturers. A Core Team will ensure growth oriented market for NextGen Bus Chassis and possibly capture a market share of 10-15% in India and 5-10% in ASIA over next 5 Years*. Indian Luxury Bus Market segment is guestimated at Rs 3,000 Crore p.a., 10-15% p.a. as per TEAMPro* * Subject to Detailed Market Study of India / ASIA by TEAMPro and implementation by AMW.

11 Consulting Proposal CVDS & TeamPro to help AMW & body builders market their products to Europe, US & other countries as well. TEAMPro will conduct TEV Study, promote Partnerships and tie-up with Banks for Pan-India / Asia Customer Financing to the tune of Rs 1,000 Crore or entire industry requirements on Yearly basis. TEAM is on the Panel of leading All India Banks and Financial Institutions since 1983, with funding business generated for USD 10 billion projects in diverse sectors – Industry, Infrastructure, Services, Tourism, eBusiness, Education, SEZ (Special Economic Zone)…

12 Funding Assistance A complete project to be conceived, project study to be done for funding & financial assistance sources. Arranging for the funding under special modernization schemes from government to be explored. Financial assistance from ADB, Ministry of Tourism development, etc to be explored.

13 Strategic Partners TeamPro Ltd - Project & Finance Management Consultants. CVDS – Design & Technology provider. AMW – Chassis Manufacturer. Bus Body Builders like Ruby, Rusy, ACGL, KSRTC, BEST, GSRTC, etc. Banks & Financial Institutions. Government Ministries, ADB, World Bank etc.

14 Strategies for Success
Speed of – Decision Making for Project Formulation and Budgetting Viability Study Partnership with Stakeholders Fund-raising for the Project Customer Financing tie-ups Strategic Marketing Project Implementation Profit Generation and Plough-back Networking.

15 NextGen Bus Coaches© Thank You!
Time & tide wait for none. Lets try to make the Best of Bus. Competition is coming!

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