You are here: Home » Companies » News
Business Standard

Ashok Leyland expands LCV offering in bid be among top-10 global CV players

The CV major has said that LCV will be one of the three major levers to drive company's future growth

Topics
Ashok Leyland | LCV | Automobile

T E Narasimhan  |  Chennai 

Ashok Leyland 'BADA Dost'
Ashok Leyland 'BADA Dost'

has taken a significant step towards achieving its goal of becoming a top-10 commercial vehicle (CV) company globally, with new Light Commercial Vehicle (LCV) products under the 'BADA Dost' brand. The company has invested around Rs 350 crore in a new platform, from which one new product will be launched every three months for the next 2-2.5 years, for the both global and domestic markets.

The CV major has said that will be one of the three major levers to drive company's future growth.

This will be the first platform completely designed and launched by after the company broke its JV with Nissan few years back.

Dheeraj Hinduja, chairman, Ashok Leyland, said the launch is an important milestone to achieve the firm's vision of becoming a top-10 global player in the CV industry. He noted that 70 per cent of the global CV industry is today.

ALSO READ: Escorts, Ashok Leyland: 5 commercial vehicle, tractor makers you can buy

Hinduja said the new products will help the firm increase its addressable market to 65 per cent from 34 per cent currently.

BADA Dost will be added to Ashok Leyland's current range, which includes Dost, Mitr and Partner. These three brands currently compete with 42 brands in the domestic and global markets.

Of the total sales, in term of volumes, today LCV accounts nearly 40 per cent and the company expects the pie to increase considering Medium High Commercial Vehicle (M&HCV) is currently under pressure and on the other side LCV as a market is growing.

Vipin Sondhi, MD & CEO of added, the all new BadaDost will be available in two variants -- 2.99T GVW and 3.49 GVW -- and is the first product to be based on the new platform. "It will be a global offering and will spawn ICE and an electric.


ALSO READ: Defence, LCV and buses to be key growth levers at Ashok Leyland: Chairman

The new platform will help the company to expand the global market considering the new vehicles will now be available in both right-hand-drive and left-hand-drive options, enabling the company to look at international markets more aggressively. He estimates, the markets, including Africa, Asia, Gulf etc., which the company target is estimated to be around 800,000 units.

Nitin Seth, COO, Ashok Leyland, said that a decade back LCV accounted for 35-40 per cent of country's overall CV sales in India, and later rose to 70 per cent in line with global trend. Under Covid, LCV makes up 86 per cent of overall CV sales, though it is not a sustainable. Seth expects it will touch around 70-75 per cent. Today, the LCV market in India is around 500,000 units.

The current demand is largely driven by e-commerce and rural markets, said Seth, adding that of the total LCV sales in the country 60 per cent comes from e-commerce, vegetable transportation and small goods transportation.

On launching electric vehicle, Hinduja said the vehicle is ready and the launch will be based on Government policy, customer base, and charging stations. Seth added that the CNG version will be ready in 8-12 months and will be launched at NCR initially.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, September 14 2020. 16:45 IST
RECOMMENDED FOR YOU
.