Volvo Buses diversifies in India, eyes new revenue streams

BANGALORE: Faced with a slowdown in growth, Volvo Buses India Pvt Ltd today announced a foray into the consultancy services business and said it expects 50 per cent of its revenues to come from engagements other than sales in five years.

Volvo Buses India sold 440 buses in the country in the calendar year 2008, up from 200 the previous year, a growth of more than 100 per cent, according to its Managing Director Akash Passey.

But for 2009, the company is expecting a sales growth of 20 per cent.

At a press conference here, Passey said the company expects "soft offers" - consultancy services, activities pertaining to managing customers' fleet and any engagement other than sales of buses - to constitute 50 per cent of its total annual revenues by the end of five years.

Speaking on the consultancy business, he said Volvo Buses is looking for partnerships and collaborations with civic and transport authorities to decongest cities, help create a more efficient system and take up projects to provide sustainable solutions customised for a city's transportation needs.

Under this initiative, global Volvo experts would soon interact with Bangalore Metropolitan Transport Corporation.