TATA Motors and Ashok Leyland to increase bus production
India's biggest auto company TATA Motors has speeded bus production at its massive Dharwad facility, primarily to avoid any delay in honoring its commitment to supply low-floor buses to the Delhi Transport Corporation.
Both TATA Motors and Chennai based Ashok Leyland have been asked to accelerate the supply of 2,500 buses an order placed by DTC at the start of this year. While Ashok Leyland has already overshot the original delivery deadline of September.
TATA Motors said it is confident of meeting its February 2010 target. However, TATA Motors was earlier slammed by the Ministry of Urban Development for failing to honor its responsibility of supplying buses ordered by a few states under the Jawaharlal Nehru National Urban Renewal Mission within the set timeline.
Buses ordered by DTC hold greater significance for both companies, as these will be used during the Commonwealth Games due to begin on October 3, 2010, in the national capital.
TATA Motors managed to bag the major share of the DTC order, comprising 1,625 ultra modern buses with a mix of air conditioned and non AC buses.
Ashok Leyland got the order to supply the balance 875 ultra low entry buses, comprising 350 AC buses and 525 non AC buses. The total purchase value of the 2,500 buses stood at INR 1,380 crore, while the value of a 12-year maintenance contract for the vehicles, which both companies agreed to provide, was worth an additional INR 2,010 crore.
TATA Motors' contract was valued at INR 2200 crore while Ashok Leyland's contract was valued at INR 1190 crore.
Mr P M Telang MD (India Operations) of TATA Motors said that "We are ramping up the Dharwad plant capacity to 700-800 light buses per month. Parallelly, we are also setting up a line for heavy buses, which will produce 200 buses every month. We are hopeful of clearing the DTC order by February."
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