Indian automotive manufacturer Ashok Leyland (ALL) is maintaining a strong hold on its market share and hopes to keep it above 32 per cent in the commercial vehicle (CV) segment. As revealed by ALL’s executive chairman Dheeraj Hinduja after the company’s Q2 results, the business has finalised a number of launches for the second half of FY23, and the demand for buses and trucks appears to be strong. Hinduja stated that the business was working to develop both organisational capabilities and competitive products for upcoming projects that will use alternative energy sources.
Given an increase in domestic sales, Ashok Leyland increased its market share by 9.6 per cent to 32 per cent in the second quarter. Domestic sales of medium and heavy commercial vehicles (M&HCV) grew by more than twice the industry average, or 113 per cent, to 25,475 from 11,988 the year before. In the second quarter, domestic LCV volumes went up by 28 per cent to 17,040 from 13,328 in the same period last year.
A CareEdge report claims that the CV market is still experiencing robust growth, which is being driven by pent-up replacement demand, higher mining and construction activities, better freight availability, and expansion in end-user industries. ICV and LCV truck volumes are projected to continue serving last-mile connection demand driven by e-commerce.
The company has observed strong demand for Avtr, its modular truck platform, and anticipates that interest will grow with an uptick in economic output. In line with growing demand, the company is also boosting the production of its Bada Dost model in the LCV market.
Additionally, Ashok Leyland’s M&HCV domestic division saw growth in November, going up from 4,661 unit in the corresponding period last year to 8,685 units. The LCV segment gained 6 per cent to 4,969 units from 4,703 vehicles, which brought the total domestic CV growth to 46 per cent. The quarter’s export volumes for MHCV and LCV were 2,780, up by 25 per cent from the 2,227 last year.
The company’s top line continues to benefit from other divisions like after-market and power solutions. According to Motilal Oswal, ALL’s financial performance should significantly improve because of high demand, a stable pricing environment, and reduced commodity prices.
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