Ashok Leyland sees revival in commercial vehicle market by July
ALL believes the focus on digital will help reap the benefits of efficiency and costs. Customer requirements will be at the heart of all digital initiatives.
Hindu Flagship Commercial Vehicles Major Ashok Leyland (ALL) said on Friday that he expects the commercial vehicle market to pick up by July and the company will ramp up production and increase the number of shifts according to the evolution of the situation. The company sees good export growth opportunities, as it expects the light commercial vehicle, defense and parts businesses to complement the expansion of the overall business.
Vipin Sondhi, MD, ALL, speaking to media in virtual mode, said he expects the company to take a call to increase production by July and consider whether to increase shifts from work, depending on the Covid-19 pandemic situation. “We had seen demand come in from the third quarter of last year and the fourth quarter bode well for us,” he said.
He said the practice of price increases was an ongoing process based on rising input prices and the company had increased prices in the third and fourth quarters of the past fiscal year.
Speaking of light commercial vehicles, he said demand is driven by e-commerce coupled with growing rural economy. In the fourth quarter, light commercial vehicle volumes were up 7% year-on-year, and for the full year 21, domestic light commercial vehicle volumes were up 4%, albeit on a weak basis of FY20. This target was met despite the fact that the first three months of FY21 were a complete exhaustion and even when the light commercial vehicle industry had shrunk by 11.5%.
“Vertical LCV virtually complements ALL’s presence as a full utility vehicle major. We will be launching many more offshoots of Bada Dost in the coming days from the Phoenix platform, ”he said.
He said the Phoenix platform, on which light commercial vehicles are built, will launch more and more variants over the next quarter to further expand the presence in the segment. Last year, in September, ALL launched the Bada Dost LCV, which originated from the Phoenix platform.
He said the bus segment, which is currently under pressure, will rebound once the lockdown situation eases completely, as India travels primarily by bus. With state governments having plans in place to replenish their old fleets, the company hopes to secure large orders for them. “We have started to manufacture fully built buses in our factories so that we can provide personalized services,” he said.
On global business, Sondhi said the company will continue to make inroads into international markets. The company has made further inroads into the GCC and Africa and with the opening of the markets, the company will step up efforts to further extend its wings.
Speaking of the company’s electric vehicle plan, Gopal Mahadevan, CFO, ALL said UK subsidiary Switch Mobility will spearhead it, while vehicle production takes place in India. Switch Mobility has an Indian subsidiary Switch Mobility Automotive for the manufacturing and sales of electric vehicles.
ALL believes the focus on digital will help reap the benefits of efficiency and costs. Customer requirements will be at the heart of all digital initiatives. Emerging activities such as electric vehicles (EV) and customer solutions (CSB) will help complete the core business.
Mahadeven said the company will have a capex of 750 crore for fiscal 22, primarily to decongest the rapidly growing light commercial vehicle (LCV) portfolio, in addition to investing in the company’s existing manufacturing facilities. , Across the country.
Taking advantage of the increase in gaming volume, ALL reported a net profit of 241 crore for the fourth quarter of fiscal 21, compared to a net loss of 57 crore in the corresponding quarter of last year. Ebidta was 7.6% against 4.8% last year.
The company reported revenue of 7,000 crore in the fourth quarter of fiscal year ’21 compared to 3,838 crore in the same period last year, recording 82% year-over-year growth. ‘other.
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