BUS & COACH INDUSTRY INDIA

Hinduja Group : Business Activities

Media & Entertainment Automotive Banking & Finance

Energy & Chemicals Real Estate

IT/ITES

The Indian Economic Scenario & The Key Growth Drivers

Indias Macro Economic Growth

GDP Growth (%)

Robust Economic Growth Projections ~ 7 % to 9 % -Short to Medium Term

Source : CSO, JCIF

Favourable Economic Parameters

PERFORMANCE PARAMETERS
Forex Reserve

GOOD
Overall GDP External Debt Financial Reforms FUTURE OUTLOOK FDI Inflows New Investment Savings inflation Industrial Growth Economic reforms Internal Debt Fiscal Deficit Agricultural Growth Current Account Service sector Growth

BAD
Source : Citigroup estimates

CURRENT PERFORMANCE

GOOD

Snapshot Growth Projections Sector Wise

17.0% 15.3% 15.9% 15.5% 15.0% 15%

13.3% 13.9% 14.0% 14.5% 10.5% 10%

FY03

FY04

FY05

FY06(E) FY07(F)

FY11(F)

FY03

FY04

FY05

FY06(E) FY07(F)

FY11(F)

AUTOMOBILE

ROBUST GROWTH

CAPITAL GOODS

12.0% 12.0% 7.0% 5.2% 9%

11.6%

14.4% 12.5% 13.5% 10%

7.4%

FY03

FY04

FY05

FY06(E) FY07(F)

FY11(F)

FY03

FY04

FY05 FY06(E) FY07(F)

FY11(F)

-6.2%

CONSUMER DURABLES

CONSTRUCTION

Source: Ashok Leyland Limited

The Global Economic Forecast: Asia poised to be the emerging power house of growth

In 2020, the US and China will still be the two largest economies in the world (in PPP) India leaves Japan behind and moves up to 3rd place India, Malaysia and China will post the highest GDP growth rates (above 5%) over 2006-20 Ireland, the US and Spain are the rich countries expected to grow the most

Commercial Vehicle Industry Changing Scenario

Indian Automotive Sector Profile

Indian Automotive Industry

Source : SIAM. ACMA, AL

Source : Mckinsey , AL

The industry has grown at a CAGR of 14% p.a over the last 5 years , size is over US $ 34 Bn in 2006-07 With the potential to emerge as one of the largest in the world. Presently, India is 2nd largest two wheeler market in the world 4th largest commercial vehicle market in the world 11th largest passenger car in the world and is expected to be the 7th largest market by 2016 The components industry has grown at 17% CAGR over the last few years, size is over US$ 10 billion in 2005-06

Indian CV Industry Broad Scope

Long Distance Haulage > 500 Kms

Special Application Vehicles

10 -250 Kms

Short Distance Haulage

101-250 Kms

Inter City Public Transport

51-500 Kms

Intra City Public Transport

< 500 Kms

Distribution Network

51-100 Kms

Last Mile Haulage

< 50 Kms

Impact of Globalization in Indian Auto Sector

1950-80 1980-2007 1950-2007 2007 -

Indian CV Industry Challenges

WTO Regime & Increasing Competition Stiff Emission & Other Regulatory Changes

Cyclicality of Businesses

Operating Cost Pressures

KEY CHALLENGES
Increasing Customisation & Application Proliferation Increased Customer Awareness

Accelerated Infrastructure Development

Competition from Alternative Modes

Accelerated Technology Upgradation Requirements & Other Change Needs Requirements

BUS & COACH INDUSTRY INDIA CHANGING SCENARIOS

Evolution of Bus Market with Changing Economies

Source : A T Kearney, AL

Indian Bus Market Projections

What's Driving the change in Indian Bus Market

What's Driving the change in Indian Bus Market

Increased Disposable Income Fast Changing Spending Habits

What's Driving the change in Indian Bus Market

.Emission Norms Worldwide

Source : AL

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What's Driving the change in Indian Bus Market

What's Driving the Growth in Indian Bus Market

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What's Driving the Growth in Indian Bus Market

Process Improvement - Skill Based to Tool Based

Technological Developments & Need for Sophistication

Technological Developments in the Way we Travel

Bus Market Product Evolution

Source : A T Kearney, AL

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Industrys response to Globalization

Introduction and Implementation of Bus Code for all OEMs by 2008

Accreditation of all Unorganized Bus Body builders distributed across India

Bus Body Code Practices - India

BUS Code Talks about Classification of Buses based on Type of Operations
Type I : Urban & Sub urban Transport Type II : Inter Urban Transport Type III : Long Distance Passenger Transport Type IV : Special Purpose vehilces Comfort NDX : Non Deluxe Bare Minimum Comfort Level SDX : Semi Deluxe Slightly Higher Comfort Level DLX: Deluxe High Comfort Level and Individual Seats AC Deluxe : Ultra Deluxe Bus with Air Conditioning

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Accreditation of Bus Body Builders

All Bus Body Builders apart from OEMs to be accredited as per the Mandatory Regulations to be Introduced Unorganized way of Body Building to be converted into Organized sector which will improve the Overall Quality of the Product and People.

Accreditation for bus body builders to be made must

By Our Special Correspondent CHENNAI, OCT. 11. The Centre will soon issue a notification making it mandatory for all bus body builders to obtain "accreditation" and also come out with supplementary directive to facilitate the State transport authorities to implement the official order. Giving this information while addressing the 209th meeting of the Standing Committee (Suppliers and Contract) of the Association of State Road Transport Undertakings (ASRTU), the Director of Central Institute of Road Transport (CIRT), Pune, A.S. Lakra, explained this new order was being introduced as part of the reforms process in the transportation sector. "The process of accreditation of the bus body builders has been approved by the Government of India and every bus body builder has to be accredited from now on," Mr. Lakra said.

Bus Industry Classification

Key Drivers , Changing Specifications & AL response

Ashok Leyland Response Segment Wise

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Broadly Indian Bus Market can be Classified as following:

Buses

MDV

ICV / LCV

Intra- City

Inter- City

Stage Carrier

Institutions

Stage Carriers

Institutions

Stage Carriers

Stage Carriers

Key Drivers Stage Carrier

Changing Specifications

Daily Movement of Passengers from Small Towns En- Route to Bigger Cities Semi Deluxe Deluxe AC Deluxe Economy Class Catering to masses

< 180 HP , Front Engine

3x2 Seating Layout

Flexibility of Stoppages according to passengers needs

Standard Aggregates with higher reliability

Over Loading Capacity

Non Air Conditioned Ordinary Bus Coach

Rugged Vehicle for Harsher Conditions

Multi- Leaf Spring Suspension

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Institutions

Institutions

Key Drivers Institutions

Changing Specifications

Rapid Growth of Corporate / Industries in Special Economic Zones & Cities like School Staff BPOSs, ITES etc 2x2 Seating Layout with High Academic Institutions head Rest Seats < 180 HP , Front Engine

Growing demand for Customized Service

Air Suspension

AC / Non AC Saloons with WIFI Urban Congestion enabled

Inter-city Travel

Key Drivers Inter-city Inter- City Improving Road Infrastructure / Turn Around Time

Changing Specifications

> 260 HP; Rear Engine Euro II

Safer Travel Semi Deluxe Deluxe AC Deluxe Need for Extra Comfort Better Quality Buses

Air Suspension, Retarders

Air Conditioned Saloon with individual controls

Economical over Short Distances

High End Re-clinable Seats 2X2 , 2X1 Seating Layouts ; > 1000 mm Seat Pitch Monocoque / Space Frame Shell Type Coach Construction Built in Reliable Entertainment Systems / GPRS/ Wi Fi enabled Saloon

No gestation period

Low cost of setting up Infrastructure

Growth in Urban Population & Increasing working age population

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ASHOK LEYLAND LUXURA INTERCITY COACH

Intra- City Travel

Intra- City

Key Drivers Intra-city

Entry plus 2 Steps Entry plus 1 Step Low Floor Step Less

Changing Specifications

Urban Congestion Improving Road Infrastructure Safer Travel Rising Income Levels , growing Future lies in implementation of BRTS

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Why BRTS

Why BRTS

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Why BRTS

Advantages of BRTS
One Tenth the cost of a Rail System Unlike a Rail System , BRTS is dynamic and can change as city changes Reduction in NETT pollution with stricter Emission norms being introduced Reduced Congestion due to excessive bus lanes would improve the quality of service

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Ashok Leyland BRTS Response

In INDIA ASHOK LEYLAND is partnering with various Government bodies and STUs to introduce BRTS enabled buses in India

Operational

Introductory Stage

Ashok Leyland BRTS Response

Model Overall Length (mm) Floor Height (mm) Step ULE Bus 12000 390 Entry + 0 Panther LF 12000 635 Entry + 1 / Entry + 2 BS II, BS III & CNG BS III Rear 2 Front & Middle 40-44 25 Available on CNG Viking SLF 11000 860 Entry + 2 Cheetah, Viking & 12 Meter 10000 - 12000 1050 Entry + 3 BS II, BS III & CNG BS III (Viking) Front 2 Front & Rear 35-67 25 Available on Viking & 12 Meter Diesel Vestibule 16000 1050 Entry + 3 Entry + 3 / Entry + 0 BS II, BS III & CNG BS III Front 3 Front, Middle & Rear 62 60 NA

Fuel Engine No of Doors Door location Seating Capacity Standees Direct Drive AC

BS III & CNG BS III Rear 2 Front & Middle 35-40 25 Available

BS III Front 2 Front, Middle & Rear 45-50 25 Available

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Way Forward
AL has developed expertise through its Advanced engineering arm & can support /assist in : a. Telematics /Vehicle tracking b. Fleet management system c. IT enabled fare collection AL has a Project Services Division with capability on Project & fleet management/ transport system; the companys knowledge base/experience on vehicle design and manufacturing would effectively supplement.

Comprehensive range of products/service with complete expertise under one roof

Presented By: Rajinder Malhan Exec. Director Intl. Operations Ashok Leyland Limited rajinder@ashokleyland.com

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