Ashok Leyland – the country’s second-largest commercial vehicle manufacturer – has ended FY17 with a market share of 37.44% in the M&HCV segment, the highest since 2001 when the company had reported a market share of 38%.During FY17, sales of heavy and medium vehicles increased 3% to 113,296 units despite the adverse impact of demonetisaton which pulled truck sales down for almost two months.
In March, M&HCV volumes increased by 15% to 15,258 units as a result of pre-buying of BS-III vehicles after the Supreme Court had banned sale and registration of the same from April 1. The sudden spurt in sales at the end of March was also one of the prime reasons for the increase in the market share.
“We are happy to have achieved an overall growth of 12% during March 2017 and a growth of 3% for FY2017, despite various challenges. The last financial year was significant for us considering the number of new product launches and expansion of dealerships in north and east,” said Vinod K Dasari, CEO and MD.
The Chennai-based manufacturer has steadily been increasing its market share in the medium and heavy vehicle segment from 30.07% in FY14 to 37.44% in FY17. According to an Edelweiss report, the company had 10,664 units of BS III vehicles and only 1,000 units were with dealers since the company operates via the cash and carry model with dealers.
“Of 9,700 unsold stock, 2,000 units will be exported. The balance stock will be retrofitted with BS-IV engines and older BS-III engines will be directed towards the replacement market, either as a complete engine or in parts. Also, engines can be used for its defence and genset businesses,” Edelweiss said.