Volvo Case Study
The Volvo line of buses is one of the widely used in the world. It combines state of the art technology with increased passenger comfort resulting in a service that will become the accepted standard of intercity travel in the coming years.
The Volvo has a 300 BHP inter-cooled turbocharged engine making it the most powerful bus on Indian Roads. It has a fuel economy of 3 KMPL which remains constant even upto the speed 128 KMPH. It has a service interval of 60000 kms which means that it has very low maintenance costs. With the passenger comfort that is offered, the Volvo is a luxurious ride. This is expected to bring in customers who would normally travel only by AC train coaches, opening up an entirely new target segment. 48 seats per bus would bring an increase in capacity by 12 seats over the ordinary buses. A 30 % premium can be charged considering the greater comfort offered to the passenger. The power steering and air-conditioning will allow for greater on road time as it will reduce driver fatigue and rest breaks. The development of the Golden Quadrilateral is expected to make inter-city bus travel even more appealing than it currently is. It is expected that by 2008 end, by which time the Golden Quadrilateral should be commissioned, a travel operator can make 4 extra round trips per month. This will lead to greater profits per year. On a round trip between Bombay and Bangalore, considering all the overhead costs, a profit of Rs 72922 can be made. This is more than twice that of an ordinary bus. A breakeven period of only 15 months can be expected.
Please join StudyMode to read the full document