Volvo To Build UD Buses In Bangalore, India For Value Segment

By Ganesh

Volvo, the leading high-end luxury bus manufacturer in India, is ready to enter the value segment with its sub-brand UD. UD (Ultimate Dependability) Trucks is a Japanese commercial vehicle manufacturer that's owned by the Volvo Group.

Volvo has set up a new production facility outside Bangalore, near Kolar, in association with local coach building company SM Kannappa Automobiles that will manufacture UD branded buses. Production will start soon, with deliveries expected to begin by the end of the year.

Also Read: India's First All Electric City Bus Service In Bangalore

However, the budget or value segment buses produced by the UD brand will be sold and serviced by Volvo, at least for the time being.

UD city bus

These buses, priced around INR 45 lakhs, will be placed higher up the value segment, but below the luxury segment which will continue to be catered to by Volvo branded buses.

The range of vehicles manufactured in the new facility will consist of both city buses and coaches. These non-luxury buses will also be exported to other developing countries, with Volvo planning to turn India into an export hub in the coming years.

Consider Volvo's UD range of buses as products similar to those manufactured by Nissan's Datsun brand. These buses cost half as much Volvo's luxury AC buses and sell in higher numbers. Its presence in the entry segment will help Volvo Group make more business in the world's largest bus market, that is India.

Other than the local companies Tata Group and Ashok Leyland, Daimler is the other foreign brand in the bus segment in India, selling products under its Daimler-Benz (luxury buses) and Bharat-Benz (value segment) brands.

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Article Published On: Thursday, March 20, 2014, 12:52 [IST]
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