Ashok Leyland expects new LCV platform to double addressable market, Auto Information, Automobilnews
New Delhi: Main business automobile producer Ashok Leyland’s new gentle business automobile (LCV) portfolio that might be accessible in diesel, CNG and electrical choices might double its whole addressable market in 1-2 years and have a wholesome affect on revenue margins, considered one of its high executives stated.“At present, the corporate addresses solely 34% of the LCV market. With the launch of all of the merchandise on this platform, our addressable market will transfer to 65% which is able to enhance volumes and market share within the home market” Nitin Seth, Chief Working Officer of Ashok Leyland, informed ETAuto.
The Chennai-based firm launched its first two LCV merchandise, Bada Dost i3 and i4, constructed on the brand new in-house developed platform on Monday. “We’re planning to launch a brand new product on this platform each three months over the following two to 3 years,” Seth stated. The corporate will launch the CNG model of Bada Dost with related BS-VI engine, primarily for NCR, within the subsequent eight to 12 months.
With this launch, the truck maker is anticipating to see big accretion in its LCV enterprise the place it at present holds 18% market share. In accordance with the corporate’s senior administration, this new area not solely provides to the section within the home market but additionally opens markets world wide, particularly areas which desire left-hand drive.At current, the nation’s second-largest business automobile producer has three platforms within the LCV class – Dost, MiTR and Accomplice. Positioned within the items provider class, Ashok Leyland’s Dost is the most well-liked product in LCV area which is available in 5 variants with a gross automobile weight (GVW) of 2tonnes to three.5tonnes.
Within the April-August interval, the corporate’s gross sales of LCVs has dropped by about over 50% to 9,071 items as towards 20,465 items in the identical interval a yr in the past, majorly as a result of Coronavirus outbreak. Nonetheless, the corporate is seeing indicators of revival with the strengthening of rural demand and e-commerce companies coming again on monitor. “We see demand uptick in LCV. The business dimension of the LCV has jumped by 20% in the course of the July-August interval. I hope to see a greater demand from this month onwards,” Seth stated.
Ashok Leyland closed the monetary yr 2019-2020 with unfavorable working capital of INR 700 crore and about 35% decrease Capex. The Capex of the corporate in FY20 stood at INR1,227 crore as towards the deliberate INR2,000 crore.