In a bid to revitalise its commercial vehicle (CV) business and gain volumes, Ashok Leyland—the country's second largest commercial vehicle manufacturer...
In a bid to revitalise its commercial vehicle (CV) business and gain volumes, Ashok Leyland—the country’s second largest commercial vehicle manufacturer—is banking on exports and expansion of its dealership network in northern India.
The Hinduja group company has struggled in the last two fiscals as demand for heavy and medium trucks went down significantly, due to slowdown.
Exports of buses increased to 68.6% y-o-y to 11,980 units in FY 15, while the same for trucks grew by 11.7% y-o-y to 18,672 vehicles. Overall, the Chennai based company exported 85,782 units of commercial vehicles which is an increase of 11.3% during the same period.
According to the annual report, Ashok Leyland continues to be the market leader in the bus segment in Bangladesh, Sri Lanka and in a few countries in West Asia.
The company has also increased its market share in African countries, especially South Africa.
However, most of the growth in exports took place in West Asia as the company established a manufacturing unit in Rash Al Khaimah, which can manufacture 10 buses per day.
The company sold 3,200 vehicles in West Asia.
Gopal Madhavan, chief financial officer of the company said, “ exports are very important for the company and in the medium term would like to have a very stable one-third of revenues coming from it.”
“Historically, our exports used to be only spot deals,but we have decided that we will invest in some of the chosen markets and will make sure that we put in networks, assembly facilities and so on,” said Madhavan.