Eicher Motors [Get Quote], the tractor, trucks and buses manufacturer and engineering solution and management consultancy provider, is all set to venture into the all-luxury bus segment with two model launches this financial year.

The company will launch two different models based on separate platforms. The first of the launches will be a conventional front-engine powered luxury bus having front and rear suspension embedded technology.

The company aims to launch the model before the end of the current financial year.

The company's second launch will be on the lines of luxury buses such as the Volvo B7R and the Ashok Leyland [Get Quote] Luxura. This model will have a rear engine configuration, which will help free up space for passenger comfort and luggage space.

A Ramasubramian, Chief Executive Officer, Eicher Motors, commercial vehicles division, said, "Both the front and rear engine models are currently under development. The company aims to launch the 12-metre long, front-engine version of the bus model in the current financial year followed by the rear engine version".

Eicher's newest offerings will compete for space with other giants of the industry including Volvo, Tata Motors [Get Quote] and Ashok Leyland.

The domestic market of the luxury bus segment is currently pegged in excess of 1,000 units per year with the average cost of each vehicle being in the range of Rs 40-50 lakh or higher.

Travel and tour operators such as Raj Travels, Metro Link, Vijayanand Travels and Konduskar among others have witnessed a sharp increase in the number of travellers who prefer road travel to rail or even air travel.  This domestic surge could see operators increase their fleet service to cater to the rising demand.

Volvo India aims to grow at 30-35 per cent annually, in the next few years, against the industry growth of around 15 per cent a year.

The segment will see newer participants in future including names like Mahindra - ITEC and MAN-Force.

Eicher Motors had reported an income from operations of Rs 1,952 crore during the last financial year ending March 31, 2007, a growth of 18 per cent over the previous year's net sales of Rs 1,644 crore.

The company posted a profit after tax of Rs 61 crore for the same period as against Rs 50 crore of the previous financial.