New Delhi: Leading professional auto manufacturer Ashok Leyland’s new light professional auto (LCV) portfolio that will be obtainable in diesel, CNG and electrical options could double its complete addressable current market in 1-2 several years and have a healthier effects on profit margins, one of its best executives claimed.
“Today, the enterprise addresses only 34% of the LCV current market. With the launch of all the merchandise in this system, our addressable current market will transfer to 65% which will increase volumes and current market share in the domestic market” Nitin Seth, Main Working Officer of Ashok Leyland, told ETAuto.
The Chennai-based enterprise released its 1st two LCV merchandise, Bada Dost i3 and i4, constructed on the new in-house made system on Monday. “We are organizing to launch a new solution on this system every 3 months over the next two to 3 several years,” Seth claimed. The enterprise will launch the CNG model of Bada Dost with comparable BS-VI motor, mostly for NCR, in the next 8 to twelve months.
With this launch, the truck maker is anticipating to see large accretion in its LCV organization where it at present retains 18% current market share. According to the company’s senior management, this new area not only adds to the phase in the domestic current market but also opens marketplaces around the planet, particularly regions which prefer left-hand push.
At present, the country’s next-biggest professional auto manufacturer has 3 platforms in the LCV group – Dost, MiTR and Associate. Positioned in the products provider group, Ashok Leyland’s Dost is the most well-liked solution in LCV area which will come in 5 variants with a gross auto weight (GVW) of 2tonnes to three.5tonnes.
In the April-August time period, the company’s product sales of LCVs has dropped by about over fifty% to nine,071 models as against twenty,465 models in the very same time period a year back, majorly because of to the Coronavirus outbreak. Nevertheless, the enterprise is seeing signs of revival with the strengthening of rural demand from customers and e-commerce businesses coming back on monitor. “We see demand from customers uptick in LCV. The sector size of the LCV has jumped by twenty% in the course of the July-August time period. I hope to see a better demand from customers from this month onwards,” Seth claimed.
Ashok Leyland shut the economical year 2019-2020 with unfavorable doing work cash of INR 700 crore and about 35% lower Capex. The Capex of the enterprise in FY20 stood at INR1,227 crore as against the prepared INR2,000 crore.