'Exports will be a major thrust area along with the LCVs over the mid-term,' Vipin Sondhi, managing director and chief executive officer, Ashok Leyland said, adding that electric buses and defense business are promising verticals too.
Ashok Leyland Ltd, India’s second largest commercial vehicle manufacturer, plans to focus on exports and light commercial vehicle or LCV category for revival of volumes and overall business, a senior company executive told Mint in a recent interview.
“Exports will be a major thrust area along with the LCVs over the mid-term," Vipin Sondhi, managing director and chief executive officer, Ashok Leyland said, adding that electric buses and defense business are promising verticals too.
With a stronger play in the medium and heavy commercial vehicle or MHCV segment, Ashok Leyland’s volumes were hit in FY20 due to the impact of new axle load norms along with the liquidity crisis and the resulting economic slowdown through the year.
The Chennai-based CV maker saw it’s June quarter volumes crash 90% on the impact of the pandemic-induced lockdown and economic crisis. The domestic MHCV volumes have collapsed 97% to sales of only 723 units during Q1FY21.
Meanwhile, it has seen LCVs fetch sales of 2686 units, down 79% year-on-year during the June quarter. Intra-state transportation of goods and last mile delivery of essentials have kept LCVs in demand even during the tough months.
To bank upon the segment, the company is developing an all-new LCV platform, phoenix project, which is expected to fill the gaps in Ashok Leyland’s product portfolio.
The phoenix project will be launched in next 3 months, Sondhi said.
“It is important to intensify our presence in the geographies out of India. With the AVTR and Phoenix range, we would have the platforms to compete with the global CV makers in international markets," Sondhi said.
Ashok Leyland’s Phoenix and AVTR platforms will roll out commercial vehicles with left as well as right hand drive systems. The company plans to focus on key export markets including Middle East, Africa and the CIS countries.
“This is a 5-year plan and it is important for us to stay invested over a 5 year period because we have the product, we have the distribution and we will add more to that," Sondhi said.
Earlier in June, the company had launched its modular platform called AVTR for BSVI compliant MHCV variants in the 18.5 ton to 55 ton range. While the new modular platform is expected to deliver a high level of truck customization, analysts say that it would enable the company maintain leaner inventory and achieve lower manufacturing costs across several models due to increased commonality of parts.
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