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We expect fourth quarter to be better, says Ashok Leyland MD

Vinod Dasari

Vinod Dasari  

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Ashok Leyland has claimed that it has gained market share in many regions on the back of a recovery in medium and heavy commercial vehicle (M&HCV) segment. It is hopeful of ending the present fiscal with higher-than-the industry growth.

“There is definitely a recovery in demand though it is not complete. During the first 9-month period of this fiscal, industry grew by about 10 per cent, while we grew by 20 per cent. Given the initial indications, we expect the 4th quarter of this fiscal to be better than previous quarters,” Vinod Dasari, Managing Director, Ashok Leyland, told The Hindu.

“There is a general GDP growth happening. Movement of tanker business is better, cement and white goods are also starting to move. Also, fall in diesel price will improve the profitability of operators,” he added.

While south market has seen improvements in total volumes due to low base effect, Ashok Leyland has claimed that it has gained market share not just in south, but in other regions too.

“For several years, we had just five per cent share in Eastern region. After aggressive investments in ramping up network over a period of two years, our share in that region grew to 15-20 per cent, and we have been maintaining this share over the last six quarters,” added Mr.Dasari.

He also said the company’s share in the above 16-tonne truck segment grew to 30-31 per cent from around 28-29 per cent five years ago despite increased competition in the segment.

Similarly, its share in ICV (intermediate commercial vehicle segment) – 7.5 to 16 tonne – has gone up to 15 per cent from 4-5 per cent. In LCV (sub-7.5 tonne), it didn’t have presence five years ago, but now its share is 14-15 per cent.

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Printable version | Jun 22, 2018 11:13:24 PM | http://www.thehindu.com/business/Industry/we-expect-fourth-quarter-to-be-better-says-ashok-leyland-md/article6764434.ece