CV industry is gearing up for a rapid growth: Ashok Leyland

The Chennai-based company, the second-largest player in the commercial vehicle space, expects both its domestic sales and overseas shipments to remain robust in the remaining part of the fiscal.
Representative image
Representative image

NEW DELHI: Hinduja group flagship Ashok Leyland expects the commercial vehicle (CV) industry to grow at a fast pace in the coming quarters, with economic activity gaining momentum and demand picking up across segments, as per a top company official.

The Chennai-based company, the second-largest player in the commercial vehicle space, expects both its domestic sales and overseas shipments to remain robust in the remaining part of the fiscal.

“I believe so because the pandemic and some of the uncertainties that were there globally are now all behind us. There is no reason why the commercial vehicle industry should not grow,” Ashok Leyland Whole Time Director-CFO Gopal Mahadevan said.

He was replying to query whether the worst is behind the commercial vehicle industry, which saw sales dip in the last few years on account of regulatory changes and low offtake during the pandemic period.

“The commercial industry will grow with trucks and buses expected to do well... truck sales will improve as many industries would require more units as they are running at full capacity,” Mahadevan stated.

Besides, with the COVID-19 impact waning and schools, colleges and offices opening up, it would lead to a rise in intercity and intracity travel, aiding the sale of buses, he noted.

“So, bus sales should also go up. Also, light commercial vehicles will grow because there has been a disruptive change in behaviour and consumer patterns. E-commerce has grown...So, what’s happening is that e-commerce will become a big driver, and last-mile delivery will become extremely important,” Mahadevan said.

On the outlook for the exports, he said the company expects dispatches to grow in the current financial year compared to FY22, with the demand scenario improving across markets.

The company shipped out around 11,000 units last fiscal and expects to improve the tally in the current financial year.

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