July 21, 2024

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Ashok Leyland expects new LCV platform to double addressable market, Auto News, ET Auto

The Chennai-based company launched its first two LCV products, Bada Dost i3 and i4, built on the new in-house developed platform on Monday.
The Chennai-dependent corporation introduced its to start with two LCV products, Bada Dost i3 and i4, created on the new in-dwelling created platform on Monday.

New Delhi: Major commercial auto company Ashok Leyland’s new light commercial auto (LCV) portfolio that will be available in diesel, CNG and electrical options could double its overall addressable sector in 1-2 years and have a nutritious affect on earnings margins, 1 of its major executives explained.

“Today, the corporation addresses only 34{0764260a27b4b31ca71a8adf79c3ae299a61e6f062052eee3f0df84ce9b30ade} of the LCV sector. With the start of all the products in this platform, our addressable sector will move to 65{0764260a27b4b31ca71a8adf79c3ae299a61e6f062052eee3f0df84ce9b30ade} which will increase volumes and sector share in the domestic market” Nitin Seth, Main Running Officer of Ashok Leyland, advised ETAuto.

The Chennai-dependent corporation introduced its to start with two LCV products, Bada Dost i3 and i4, created on the new in-dwelling created platform on Monday. “We are preparing to start a new item on this platform every a few months above the subsequent two to a few years,” Seth explained. The corporation will start the CNG variation of Bada Dost with similar BS-VI motor, mostly for NCR, in the subsequent eight to twelve months.

With this start, the truck maker is expecting to see huge accretion in its LCV small business the place it presently holds eighteen{0764260a27b4b31ca71a8adf79c3ae299a61e6f062052eee3f0df84ce9b30ade} sector share. In accordance to the company’s senior management, this new space not only adds to the phase in the domestic sector but also opens markets all-around the entire world, primarily regions which want left-hand push.

At current, the country’s second-most significant commercial auto company has a few platforms in the LCV group – Dost, MiTR and Companion. Positioned in the products provider group, Ashok Leyland’s Dost is the most common item in LCV space which will come in five variants with a gross auto fat (GVW) of 2tonnes to three.5tonnes.

In the April-August period of time, the company’s sales of LCVs has dropped by about above 50{0764260a27b4b31ca71a8adf79c3ae299a61e6f062052eee3f0df84ce9b30ade} to nine,071 models as towards twenty,465 models in the same period of time a yr ago, majorly due to the Coronavirus outbreak. Nevertheless, the corporation is seeing symptoms of revival with the strengthening of rural need and e-commerce companies coming again on observe. “We see need uptick in LCV. The market size of the LCV has jumped by twenty{0764260a27b4b31ca71a8adf79c3ae299a61e6f062052eee3f0df84ce9b30ade} all through the July-August period of time. I hope to see a greater need from this thirty day period onwards,” Seth explained.

Ashok Leyland closed the financial yr 2019-2020 with adverse operating money of INR seven-hundred crore and about 35{0764260a27b4b31ca71a8adf79c3ae299a61e6f062052eee3f0df84ce9b30ade} lower Capex. The Capex of the corporation in FY20 stood at INR1,227 crore as towards the prepared INR2,000 crore.