Ashok Leyland invests Rs 500 crore for BS-VI transition, new platform

Commercial vehicle major Ashok Leyland has invested around Rs 500 crore for BS-VI transition, including Rs 300-350 crore for creating a new platform, based on which the vehicles will be launched. 

Meanwhile, the company management expects medium and heavy commercial vehicles  (M&HCV) industry would close the fiscal (2019-20) with total sales of around 2,00,000 units, a drop of nearly 46.23 per cent compared to last year.

Chennai-based commercial vehicle maker on Monday announced the delivery of first batch of BS-VI trucks for its customers in Delhi-NCR region, aligning to the BS-VI fuel availability in the country.

Anuj Kathuria, chief operating officer, Ashok Leyland said the company has invested around Rs 500 crore towards the BS-VI transition, including Rs 300-350 crore in a new platform.

The new modular platform on which it plans to roll out its future medium and heavy products would help the Hinduja Group flagship company to cater various customer demands in a cost effective manner.

Ashok Leyland products will meet the BS-VI emission limits through a combination of iEGR (intelligent Exhaust Gas Recirculation) technology and SCR (Selective Catalytic Reduction) system.

"The new range of modular trucks will deliver customised solutions to customers," said Kathuria, adding that pre-buy demand was “nothing great.”

Industry volume in 2019-20 would be around 2,00,000 units as against 3,72,000 units, last year, a drop of nearly 46.23 per cent, he said.

M&HCV volume during 2019-20 (April to December) dropped by 36.39 per cent to 1,76,202 units as against 2,78,319 units, a year ago.