Ashok Leyland to launch electric version of LCV, Dost

The product is in development stage, company's Executive Vice President said

Ashok Leyland is planning to launch electric version of its light commercial vehicle (LCV) product Dost. It may be noted, last month the company said after addressing its supply chain constrains for its LCV product, the company is gearing up to launch higher tonnage of Dost, followed by passenger and Compressed Natural Gas (CNG) versions.

Speaking on the sidelines of a press conference to announce Confederation of Indian Industry (CII's) Automotive R&D Trend 2013, which is scheduled to held on March 8, 2013 in Chennai, Dr V Sumantran, executive vice chairman of Hinduja Automotive Ltd said that in a year's time the company will launch the electric version of Dost. The product is in development stage, said Sumantran.

Earlier in January while addressing Analysts, K Sridharan, chief financial officer, Ashok Leyland Ltd said that the company is gearing up launching higher tonnage of Dost which would be in 5 tonne range, then it will be followed by passenger version and CNG Versions of Dost.

These launches will be before the new green field facility at Pillaipakkam gones on stream. The JV partners, Ashok Leyland and Nissan, is setting up the greenfield facility at a cost of around Rs 4,150 crore, near Chennai and it expects to go on stream in the fiscal 2016.

It may be noted, Ashok Leyland's overall February 2013 sales dropped by 10%, its LCV product reported a 90% growth. The company has sold 3,001 units of Dost in February 2013, as compared to 1,582 units, a year ago.

The growth in the LCV segment was good and run rate has been around 9,000 vehicles per quarter, which will be increased to 11,000-12,000 units in the fourth quarter, since the supply constrains has been resolved.

“Our inability to ramp up production to cater the demand was due to sourcing of gear boxes, which was done by the JV, which is now been resolved,” said Sridharan, told Analysts.

It may be noted, Ashok Leyland entered LCV segment in 2011, by joining hands with the Japanese automajor Nissan. Ashok Leyland holds 51% stake in the JV. The first product was launched by Ashok Leyland in September 2011 and was branded as 'Dost'. The second product from the JV will be from Nissan and the third product will be from Ashok Leyland.

At present Ashok Leyland's Hosur facility can produce 55,000 units of Dost, while its joint venture partner Nissan's facility at Oragadam can produce around 44,000 units.

The demand for LCV is driven by the fact that hub and spoke model is growing across the country. The demand will continue to boom for LCV, while downfall will continue in M&HCV. The growth story for 12 tonne would continue for some more years, said Sridharan.

On investment in the LCV JV, Sridharan earlier said, Ashok Leyland has committed an investment of around Rs 500 crore, which will be done in the next two fiscals.