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

Dheeraj Hinduja says company's future product plans would revolve around auto buzzword CASE mobility. CASE is an acronym for Connected, Autonomous, Shared & Electric vehicles

Topics
Ashok Leyland | LCV | defence manufacturing

T E Narasimhan  |  Chennai 

Ashok Leyland Chairman Dheeraj Hinduja
Hinduja said Light Commercial Vehicle (LCV) business will be company's first lever of growth.

Chairman Dheeraj G Hinduja today said that the company's future product plans would revolve around CASE mobility, which is a buzz word among the worldwide auto industry. CASE is an acronym for Connected, Autonomous, Shared & Electric vehicles.

The company also said three levers for growth would be LCV, range of buses and defence.

Addressing shareholders today, Hinduja said that the company had progressed very well in many of these areas, and that it would be sharing further details during the course of this year.

ALSO READ: Ashok Leyland's M&HCV sales decline by 52% YoY in August, LCV by 3%

During the past few months, reexamined the business and operating models without any presumptions so that it is able to not only weather the current unprecedented times but is also well-positioned to benefit during the economic recovery phase.

Hinduja said, "upon a careful assessment of the short-term and long-term prospects, several initiatives have been set in motion to reconfigure the Company towards sustainable growth, while minimising the negative impact of economic cycles. Concurrently, the Management is focusing on some key enablers for long term growth in addition to our traditional focus on medium and heavy commercial vehicles".

He said the company's range of medium and heavy are anticipated to post significant growth in the months to come. As infrastructure is built, capacities are better utilised and supply chains gear up, the demand for ALL's haulage, tractor-trailer and tipper vehicles should grow.

On the passenger transport side, after progressive lifting of lock down, social mobility is an essential component of attaining economic normalcy. "We would urge the Governments to develop new long term visions of public transportation by road. Travel by buses should no longer be in the overcrowded conditions of the past. Bus services should be run as per appropriate capacities and people distancing norms. We are keen to engage with the Central and State Governments and other stakeholders to define viable solutions, including meeting potential demand for various types of buses," said Hinduja.

ALSO READ: From PMI to auto sales, August numbers send mixed signals on recovery

Hinduja said Light Commercial Vehicle (LCV) business will be company's first lever of growth. Though a late entrant, today business contributes about 40% of ALL's total vehicle volume. The company set to unveil a brand new range of LCVs with the new range slated for progressive introduction this month. The in-house developed international product platform has both left hand and right hand options, and opportunities will be immense in India and overseas markets.

Along with the new and AVTR platforms, a new range of buses is also in the offing strengthening the product portfolio for International Operations for a greater presence in the traditional SAARC, Middle East, markets as well as in which will be the new thrust area. This will be the second lever of growth.

The third lever of growth will be Defence. ALL is one of the largest providers of logistic vehicles to the armed forces and will continue to position mobility products and solutions in an accelerated manner. In addition, feasibility of new opportunities afforded by recent government announcements are being seriously examined.

On EVs, he said, ALL got ambitious plans for a global play in the EV segment in both passenger and light in the short and medium terms. The new LCV will also have an EV version.

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First Published: Wed, September 02 2020. 19:58 IST
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