Close on the heels of Tata Motors agreeing to buy Italy’s CV maker Iveco, Chennai-based truck and bus major Ashok Leyland (ALL) says it is open to forming a non-equity alliance to grow the business. Dheeraj Hinduja, executive chairman, ALL, tells Swaraj Baggonkar that alliances in specific areas like technology development or market reach are welcome, though he doesn’t foresee any equity relationships at the moment.
Q. How do you view the possible revamp in the GST rates that could lower the levies?
A. This will stimulate demand, strengthen consumption and lead to much more economic activity and growth. We will have to see what changes in policy there are for the CV segment. We do hope that it will have the desired impact.
Q. Will there be an entry into newer segments by Ashok Leyland?
A. We are constantly working on the newer segments. There might not be an immediate entry into the new segment in this financial year, but there are many segments that we are looking to enter. Last year, we entered the 55-tonne electric and the 19-tonne electric segments. We are now increasingly getting traction over there.
Q. Analysts have spoken about a moderation in demand in the near term. Do you agree?
A. We believe the slow growth of the CV segment is coming to an end now, and we should start seeing much better days ahead. This year, our expectation is of a single-digit growth. But the outlook does seem a lot more positive with the government capex scheme and the possible GST changes. We feel quite optimistic.
Dheeraj on Tata Motors’ purchase of Iveco
Q. Tata Motors is buying Iveco. Would you be more in favour of joining forces with any foreign company for technology, scale or products?
A. We are financially strong and moving along very well. Alliances in specific areas, like technology development or market reach, are welcome. But I am not foreseeing any equity relationships at the moment. Every company has their own plans and strategy. We are keen to continue expanding our position in India and using the country as our base for exports.
Q. So you are open to welcoming alliances?
A. I am quite convinced that the competitiveness of the Indian products is now much more accepted in global markets where we play or where we want to play. We are well prepared for any new entrant into the Indian market. We will be open to looking at certain alliances as and when we feel that they will help, and if we can add value to someone else.
Q. Will CV volumes in FY26 surpass the FY19 record?
A. One of the changes that has taken place is that the tonnage has increased. We are seeing more of the 55-tonne vehicles in demand. So, even though the number of units might not be increasing, or if they don’t reach the previous record high, I do believe that the freight movement is higher, and definitely, bus sales are higher.
Dheeraj on the future of Hinduja Leyland Finance
Q. You had earlier said that in Q1FY26, we should be able to see a listing of Hinduja Leyland Finance (HLF). Do we have an update on the reverse merging of HLF into NXT Digital?
A. We did finally receive the RBI NOC, and the company is going through all the other formalities. But this will still take time. While the main approval has come through, the boards have to meet, and the merger ratios have to be approved. I am not seeing the actual listing for at least another 6-8 months.
Q. So it is unlikely that the listing will happen in FY26
A. It is, I think, likely to happen in Q1FY27.ENDS