Tata Motors, maker of the iconic 407, has finally stepped into the ultra luxury

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coaches (buses) segment to protect its turf against foreign rivals. The country’s largest automaker on Tuesday launched the ‘Divo’ priced at Rs 66 lakh (ex-showroom, New Delhi) to take on Swedish Volvo that dominates the inter-city luxury coach segment.

“We believe that now is the takeoff stage for this segment,” said Ravi Pisharody, president of commercial vehicles business, Tata Motors. “The segment is around 250 units per annum, but we expect it to grow exponentially to about 1,000 units per annum in next three to four years,” Pisharody added.

Volvo and Daimler (Mercedes-Benz) dominate the inter-city ultra luxury coach segment but Pisharody said, Tata aims to corner 50 per cent market share in this space within the next couple of years. Foreign players including the likes of China’s Beiqi Foton Motor, Sweden’s Scania and Belgian Van Hool have announced their intentions to enter the lucrative bus market in India shortly.

“International competition products are 15 to 20 per cent more expensive (compared with Divo) due to imports (imported components),” claimed Pisharody. Volvo and Daimler sell buses in this segment between Rs 75 lakh and Rs 95 lakh. Tata Motors already has 50 per cent market share in the intra-city luxury coach segment that is estimated at around 3,000 units per annum. The Divo luxury bus incorporates high-end features such as in-built refrigerator and multiple adjustable seats. Spain’s Hispano Carrocera, a bus and coach manufacturing company that was acquired by Tata Motors in 2009, has been instrumental in designing the Divo.

Tata Motors said its commercial vehicle market share has expanded to 62 per cent this financial year from about 54 per cent in 2007-08. The company, which used to manufacture only the bus chassis initially, said it also makes bus bodies now and rolls out about 75 per cent of its bus output in the form of CBUs (completely built units). “Gradually, we see this percentage increasing. But, it is not going to be 100 per cent because some customers in private market tend to procure bus bodies from other sources,” Pisharody said.

The company on Tuesday also launched Starbus Ultra buses range at around Rs 15 lakh for different applications such as schools and private institutions.