Ashok Leyland expects commercial vehicle industry to gain momentum gradually

Commercial vehicle maker Ashok Leyland expects the industry to grow at a fast pace in the coming quarters as economic activity starts gaining momentum and demand for vehicles across segments starts picking up, a senior company official told PTI. The Chennai-based company expects both its domestic sales and overseas shipments to remain robust in the remaining part of the fiscal.

The company's Whole Time Director and CFO Gopal Mahadevan told PTI in an interaction that the pandemic and some of the uncertainties that were there globally are now all behind the industry. “There is no reason why the commercial vehicle industry should not grow," Mahadevan said.

While addressing the query whether the worst is behind the commercial vehicle industry, which saw its sales dip in the last few years on account of regulatory changes and low offtake during the pandemic, Mahadevan said that the industry will grow with trucks and buses expected to do well. "Truck sales will improve as many industries would require more units as they are running at full capacity," he said.

He added that with Covid scare now going down, and schools, colleges and offices opening up, it would lead to a rise in intercity and intracity travel, aiding the sale of buses. "E-commerce has grown...So, what's happening is that e-commerce will become a big driver, and last-mile delivery will become very, very important," Mahadevan said.

Speaking about exports, Mahadevan said that the company expects dispatches to grow in the current financial year compared to FY22, with the demand scenario improving across markets. During the last fiscal, the company shipped out around 11,000 units and expects to improve the tally in the current financial year.

Ashok Leyland hopes to further enhance its exports to SAARC, the Middle East and Africa, also expects better dispatches this year on account of an improved product range overall.