Ashok Leyland Limited, one of the leading commercial vehicle manufacturers, explores the possibility of entering the used-vehicle market. In addition, the company plans to launch Bada Dost LCV offshoots from the Phoenix platform, a top official said.
Vipin Sondhi, MD & CEO, told The Hindu, "Yes, we plan to enter in the used-vehicle market for trucks and we have already started talking to our channel partners. More details about this plant will be disclosed when everythings takes a final shape."
Along with this, the all-export, defence, power solutions, LCV and parts business will continue to grow. Furthermore, he added, "We will intensify our efforts in Central Asia and African countries to strengthen our presence."
During FY21, aftermarket, power solutions, and LCVs grew well, and the bus segment contracted due to the long periods of school closures and the absence of public transport.
The bus sector will resume once the lockdown situation is completely eased. The company is also betting on the replacement of the fleet by various state governments planning to replenish the old fleet.
On rising raw material prices, he said the company had increased product prices during the 3rd and 4th quarters of the last financial year and kept a close watch on the cost.
Mr Sondhi also indicated that production could be increased in July, increasing the number of shifts based on the relaxation of restrictions. He said, "India's GDP is poised to grow at the rate of 9.5% in FY12, which is a good sign for the commercial vehicle industry. We are confident that we will come out stronger once the demand picks up."
Gopal Mahadevan, CFO, said, "Ashok Leyland plans to invest Rs 750 crore in Financial year 2022, against Rs 670 crore in financial year 2021. The money will mainly invest in debottlenecking LCV plants, routine investments in other plants and safety."
Ashok Leyland Ltd. also announced the Environmental, Social & Governance (ESG) Committee led by the independent director N.V. Balachander. The main goal or aim of the committee is to provide guidance and support to the environment, CSR, corporate governance and other public policy matters relevant to the company.