FY2018, Ashok Leyland sold 1 lakh units and aims to launch 20 new products in FY2019
Vinod Dasari, MD, Ashok Leyland
Apr 20, 2018 | Source: thehindubusinessline.com
FY2018, Ashok Leyland sold a record number of trucks of 1 lakh units. These are the highest ever medium and heavy commercial vehicles (M&HCV) volumes have been done.
The company has maintained its market share of 33% in the M&HCV space despite intense competition.
Mr. Dasari, mentioned that the company expects to maintain the growth momentum to continue till 2020 due to favorable growth drivers like infrastructure push and BS VI related pre-buying that is expected.
In FY2019, the company aims to launch 20 new products which will be a combination of variants and new models and variants across categories. Besides, it will undertake a Rs. 1,000 Crore capex (highest announced thus far) to expand capacity & capabilities and also for new product development.
The MD mentioned that Ashok Leyland will de-bottleneck all its plants to solve the capacity constraints which have arisen due to rise in demand for tippers and other vehicles.
For FY2018, Ashok Leyland is likely to report revenues in excess of Rs. 25,000 Crores as against Rs. 20,000 Crores it reported in FY2017. This rise in revenues is attributed to shift in demand for heavy tonnage vehicles according to Mr. Vinod Dasari.
Regards the Light Commercial Vehicles (LCVs) segment, the company has completely turnaround completely and made positive margins in FY2018 against negative margins in FY2017.
The company is betting on products like 41 tonne fully built truck and MiTR left hand drive for fuelling growth in FY2019.
Ashok Leyland’s success is due to the company’s own technology and other customer centric initiatives like i-Alert, LeyAssist and LeyKart highlighted by the Managing Director.
The company’s iEGR technology proved to be accepted by the customer that is underlined by their faith in the company’s products which made sales volumes of over 1 lakh units recorded in FY2018 by the company.
The MaxServe model of the company to focus on helping its distributors increase profitability has also paid dividend mentioned Mr. Dasari. He said that, Ashok Leyland’s dealers were selling about Rs. 530 Crore worth of services in FY2016 which in FY2018 increased to Rs. 1,048 Crore. Resultantly, the overall service satisfaction index.