Automotive opens service facility for Ashok Leyland

Automotive Manufacturers, which represents Chennai-based heavy trucks and commercial vehicles manufacturer Ashok Leyland in Andhra Pradesh, on Thursday opened a new service infrastructure here. Set up at an investment of Rs 4 crore (excluding the land cost), the service facility is housed on five acres with an initial built-up area of 31,000 sft with provision for future expansion.

Inaugurating the facility, Rajive Saharia, executive director (marketing), Ashok Leyland, said the commercial vehicle (CV) industry was witnessing a slowdown on account of unprecedented rise in input costs and higher interest rates.

“Though the company saw a robust growth in the last four to five years, growth in the CV segment has slowed down this year. However, there is a surging demand for tippers and passenger vehicles, which will help us maintain the current market share,” Saharia said. Despite pressure on the company’s margins due to high input costs, there are no immediate plans to increase the vehicle prices, he added.

 

Ashok Leyland currently commands a 32 per cent share in the heavy and commercial vehicles market. It expects to sell 80,000 units in the current financial year, as against 78,000 units last year.