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Old 26th June 2010, 21:21   #1
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Default China Bus...but "Made In India"

Not many of us would be aware that china bus are assembled & body built here in India. Recently i had a chance to visit one such facility here in Cochin. The company "Chacks" is engaged in export of China's FAW (First Automotive Works) make buses to gulf region. The buses are brought in CKD form and assembled here, followed by body building. Then they are driven upto Mumbai from where they are shipped to Dubai. Last week 6 buses were dispatched from here. Here are some images of the same.
These LHD buses are 67seater standard versions (with provision for A/c) used for Staff & School transport.

"There was a huge market for these buses earlier to economic crises. Last year the demand was very less. But now the market is responding better. But there is stiff competition from the likes of Ashok Leyland. They have recently opened their new plant there", says Mr.Kuruvila, Chacks.
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Old 26th June 2010, 21:46   #2
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"There was a huge market for these buses earlier to economic crises. Last year the demand was very less. But now the market is responding better. But there is stiff competition from the likes of Ashok Leyland. They have recently opened their new plant there", says Mr.Kuruvila, Chacks.
They dont look better than AL/TM. In fact new Tata Marcopolo school buses and AL A1+ school buses got better fit and finish. No wonder they are loosing maketshare. By they way, does Chaks make bus bodies for domestic use (on AL/Tata etc) also? Any plans for Chaks to introduce FAW buses for demoestic use?
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Old 26th June 2010, 22:15   #3
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67 seats in a single rear axle bus. Thats a lot of seats. Is it a 12m body?
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Old 26th June 2010, 22:19   #4
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These buses are mainly used in the middle east for ferrying labours, they don't have much share when compared with AL and TATA atleast in the UAE. Belhasa is the dealer/distributor in UAE (thats bh logo in front), haven't seen them used as school buses though. There was a new body design introduced last year and looks much better than above pictured.
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Old 26th June 2010, 22:39   #5
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But why should they bring it in CKD form to India, assemble it here and then ship it? Why not ship it directly? Whats the advantage of the former?
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Old 28th June 2010, 12:19   #6
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Precisely when everyone is running to China for cheap production costs why are they doing the bodies here?
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Old 28th June 2010, 14:19   #7
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But why should they bring it in CKD form to India, assemble it here and then ship it? Why not ship it directly? Whats the advantage of the former?
I guess customs & Import duties are different for different products, hence this procedure is followed.
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Old 28th June 2010, 17:59   #8
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I guess customs & Import duties are different for different products, hence this procedure is followed.
I doubt if it would be any less in a country like India, usually the export duty levied could generally be quite high. However I have no idea what goods are exempt from Export Duty.

What beats me is that , China is a cheaper market for such things and they still get the bus built here.
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Old 28th June 2010, 20:56   #9
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What beats me is that , China is a cheaper market for such things and they still get the bus built here.
+1 and add to that the cost of shipping the CKD to India & pay for Chaks (including labours+drive to Mumbai+profits) & not to mention the tax!!!

IMO, Marcopolo looks way better than this & 67 seater!!! How would the technical spec look like? But I assume this should be a custom make. I checked on their site & none of their models seems to have a 67 seater capacity.
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Old 29th June 2010, 16:45   #10
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May be a risk hedging strategy for Anti-dumping duties , Most of the Chinese products are cheap because their real input costs are never accounted ( Subsidized power, subsidized land , subsidized raw materials ) and at times attract anti-dumping duties.
Suppose if they have such a case in future in then they can supply from India and evade such punitive measures. So for stratigic reason it makes sense to create a base with some capacity and augment it whenever required.
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Old 29th June 2010, 21:19   #11
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Originally Posted by amitk26 View Post
May be a risk hedging strategy for Anti-dumping duties , Most of the Chinese products are cheap because their real input costs are never accounted ( Subsidized power, subsidized land , subsidized raw materials ) and at times attract anti-dumping duties.
Suppose if they have such a case in future in then they can supply from India and evade such punitive measures. So for stratigic reason it makes sense to create a base with some capacity and augment it whenever required.
This is a very interesting insight, something to think about. Thanks for sharing.
I was thinking that perhaps the Indian bus body building industry, though mostly unorganized, might have more expertise and might be cheaper than the Chinese, but that clearly is a wrong explanation as the margins for the body cannot compensate for the duty being paid.
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Old 7th July 2010, 15:54   #12
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Quote:
Originally Posted by amitk26 View Post
May be a risk hedging strategy for Anti-dumping duties , Most of the Chinese products are cheap because their real input costs are never accounted ( Subsidized power, subsidized land , subsidized raw materials ) and at times attract anti-dumping duties.
Suppose if they have such a case in future in then they can supply from India and evade such punitive measures. So for stratigic reason it makes sense to create a base with some capacity and augment it whenever required.

maybe but CKD bus kit manufacturing is a big industry in China and even the likes of Ashok leyland import bus kits from China and supply in the domestic market to STUs. thats the price competitiveness the Chinese offer on their basic bus kits.

chaks in all probability would have got the order from middle east and importing the kits from china and building the bodies here.
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Old 7th July 2010, 17:45   #13
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The bodies look like they are from the 90's. But it doesn't matter for the job it's made for.
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Old 7th July 2010, 18:05   #14
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Some time back while travelling from Kochi to Angamaly came across two such buses after Kalamssery. When saw it ahead of me it appered to be quite ordinary looking buses but new ones, travelling at a moderate speed and I thought that they are Eicher ones. I followed the bus in the same lane and nothing even remotely extraordinary was noticed. But while overtaking I noticed the passenger door at RHS front and then only the LHD was observed. Slowed the pace and travelled in front of the bus and initially thought that these are for the Kochi Intn'l airport. No known baadges were seen. Some distance ahead came across a similar one.
Then though I wondered aabout he make and where these buses are headed to. The incident was forgotten and now Transsenger has really come up with the news.
Transsenger you really did a marvelous job by going an depth.
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