Witnessing a jump in demand for its vehicles, AL has planned to increase its presence in the state of Jharkhand wherein its sales have jumped to a record 50% from higher single digits. The investment would be close to Rs. 500 crore and follows ALs plans of setting up an assembly plant in Telangana at a similar investment.
Anuj Kathuria, President Global Trucks, Ashok Leyland said:
In wake of government focusing on big ticket infrastructure projects the positive impact will be on mineral-rich states like Jharkhand (to fuel the steel, mining and cement industry) and as a result the demand or trucks and tippers will automatically increase.
AL is looking to invest close to Rs. 400 crore within the next two years and plans to triple its sales in the LCV segment by 2019-20. Ashok Leyland President (LCV & Defence) Nitin Seth said:
For the medium term between 12 months to two years, we have allocated fresh fund of Rs 400 crore on product development for LCV. We will have two new platforms on which we can develop several models — from right hand drive to the left hand drives with different powertrains, as we will be targeting not only the domestic market but overseas as well. We believe we can be a significant player in the LCV segment. Our target is to achieve annual sales of one lakh units by 2019-20. Exuding confidence of “tripling sales” from the current 35,000-36,000 units a year. It is possible for us, we have the infrastructure ready all we need is new products to push volumes.
Our new products will be able to address markets like Indonesia, Malaysia and Africa, SAARC region which are very similar to India. Even for GCC, we will be able to meet the standards there with our new products. Our dealers have been longing for new products, which we will deliver. There will be variants of existing models in short term while the roll out of brand new products will happen in the medium term.
AL reported sales of 18,682 units in March, 2017 against 16,702 units during the same time last year resulting in a growth of of 11.9%.
- Sales of MHCV stood at 15,258 units against 13,240 units
- Sales of LCV stood at 3,424 units to 3,462 units