By focusing on network expansion and customer profitability during the de-growth phase of the commercial vehicle market, Ashok Leyland(ALL) is now capitalising the growth that has dawned on the sector.
ALL recorded a growth of 54 per cent in the half year ended 30 September 2015 to Rs 8781 crore. Sales volume of the medium and heavy commercial vehicles (MHCV) stood at 51,337 against last half year’s 33,115. An increase in the light commercial vehicles (LCV) sales stood at 14,198(12,204). ALL enjoys a market share of 33.1 per cent in the MHCV segment. “With improved cash flows, a positive cycle is beginning. Our growth is mainly due to the increase in replacement demand and we expect the trend to continue,” said Gopal Mahadevan, CFO. “The global benchmark is one vehicle for a population of 1000. We have not yet reached the mark of 350,000 trucks and hence there is a lot of potential and it is dependent on the economic growth,” said Gopal.