In the current fiscal, the company has spent Rs 600 crore towards capex by end of December and a further `200-300 crore is earmarked for the ongoing January-March quarter.
By Pritish Raj
Ashok Leyland has earmarked a capital expenditure of about Rs 1,000 crore for the next fiscal to expand its portfolio in the light commercial vehicle (LCV) segment. The Chennai-headquartered automobile manufacturer is looking to beef up market share in this segment which currently stands at around 10%. The funds will also be used to manufacture electric vehicles and enhance production capacity.
Gopal Mahadevan, chief financial officer, Ashok Leyland, said the capex in FY20 will go towards manufacturing electric vehicles (EVs) and growing the LCV business. “Around Rs 1,000 crore is planned so far but the full estimates on the size of investments will be finalised in March,” he told analysts on the post-results conference call on Friday.
In the current fiscal, the company has so far spent Rs 600 crore towards capex by end of December and a further Rs 200-300 crore is earmarked for the ongoing January-March quarter. “We are not yet fully matured in the LCV industry and we have lots of offerings to make in the intermediate commercial vehicles (ICV) segment also. The LCV business for us will be as big as bus segment,” Mahadevan said.
Ashok Leyland will be launching a new range under the Pheonix brand in the LCV segment, which is dominated by Mahindra & Mahindra and Tata Motors.