Industry

Ashok Leyland bets on LCVs, defence to grow

Nitin Seth, COO Ashok Leyland   | Photo Credit: Special Arrangement

Commercial vehicle manufacturer Ashok Leyland Ltd. (ALL) is betting on Light Commercial Vehicles (LCVs) and the defence business as they are key levers for growth, said a top official.

“We started our LCV journey 11 years ago,” said chief operating officer Nitin Seth. “At the time, many [said] it was a wrong move. In the last 11 years, LCV sales have grown to 51% of our total volume. [LCVs] enabled us to successfully hedge the cyclicality of the medium and heavy commercial vehicle business,” he added.

For the nine months ended March, ALL sold about 49,000 LCVs against 47,000 units a year earlier, he said. In the period, sales volume grew 5% while industry contracted 17%. The company gained 2% market share, he added. E-commerce and FMCG doing well during the pandemic and the revival of the agriculture sector spurred LCV sales in the period. In FY22, the LCV segment is likely to see 30% growth and ALL would be ahead of the curve, he said.

“LCV will continue to be a focus area for ALL; [we are] already working on bridging portfolio gaps with a modular range of products that will enable us to look at international markets more aggressively. ALL will also enter five new markets in Africa,” he said.

On defence, he said ALL had sufficient orders for the next 15 months. “ALL will bid for tenders in mobility whether for armoured or non-armoured vehicles.”

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Printable version | May 6, 2021 10:30:52 PM | https://www.thehindu.com/business/Industry/ashok-leyland-bets-on-lcvs-defence-to-grow/article34387978.ece

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