Ashok Leyland to expand Altrux

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Tiruchirapalli (TN), January 2:: Terming as a 'thumping success' its pre-owned trucks business - Altrux, heavy vehicle maker Ashok Leyland Ltd, the flagship company of the Hinduja Group, plans to extend it across the country.

The pre-owned trux business, wherein used Ashok Leyland vehicles would be purchased from the market, re-conditioned and sold by the company with a six-month guarantee, had been a thumping success in Rajasthan, Kerala and Tamil Nadu, Ashok Leyland Special Director Customer Support Group V M Homabli said in Tiruchirapalli on Tuesday.

Quoting a survey, he said the market for used trucks was estimated at 77,000 vehicles per annum and sounded confident that the company would achieve 15 per cent market share over the next three years in the used vehicles business.

The company was eyeing to launch Altrux in Karnataka by January-February this year and Andhra Pradesh and others would follow suit as and when the VAT regime settled down on its mechanism in various states.

He claimed Altrux concept of pre-owned vehicle sales would have an edge over the existing channels, which were inadequately equipped to provide vehicles quality, performance rating, transparency in transaction etc.

A measure of its success was reflected in the rising resale prices of vehicles in Rajasthan. Besides, most of the leading auto financiers come forward to offer attractive financing schemes, he said.

Answering a query, Hombali said the launch of Altrux would never affect the sale of new vehicles even in the longer run.

The company registered an annual turnover of Rs 331 crore by way of selling original spare parts in 2006-07 and the target for the current fiscal was Rs 450 crore. Ashok Leyland has installed its fifth manufacturing facility in Uttarakhand, Hombali said, adding the company planned to enhance the number of service centres from the present 300 to 350 before the end of the current fiscal.

The novel scheme of MITR (Mutual Improvement Through Relationship) had gained momentum with over 4,000 retailers and 10,000 mechanics across the country.

Under this scheme, even road-side mechanics and end users were oriented and updated with relevant data on new models using information technology.