COMMERCIAL VEHICLES INDUSTRY TO GROW AT 20%
Ashok Leyland, leading CV manufacturer in India said that the commercial vehicles industry is expected to be grown by 20 percent. The CV industry has declined in the last two years but, now it has picked up and puts positive signs in the first and second quarters of this financial year. Moreover, we at Ashok Leyland have expected to be the good economy starts in the third and fourth quarters with the new launches of M&HCVs and LCVs, said by Gopal Mahadevan, chief financial officer of Ashok Leyland.
The Medium and Heavy CV segment has positive growth in this year whereas the LCV segment has witnessed for the slow sales in the domestic commercial vehicle market. Like the M& HCV segment, the LCV segment has increases its presence in the industry in the last month and posted the somewhat better growth than the previous months.
A double-digit growth, 17 percent obtained by Ashok Leyland in October, 2015 with the sales of 9,804 units over the sales of corresponding month of last year (8,402 units). The manufacturer sold 7,177 units of M& HCVs including trucks and buses against the 5,865 units in October, 2014, representing the 22 percentage growth. Ashok Leyland has the slow sales in LCV segment but, gained 4% of marginal growth by the sales of 2,267 units over the 2,537 units in October, 2014.
Ashok Leyland reported the net profit at Rs. 287 crore for the Q2 of FY 2015, representing the two-fold rise against the net profit Rs. 121 crore in the second quarter of last fiscal. When the question rose by reporters, like whether the company will target the next two quarters in sales, Mr. Mahadevan responded immediately and said “we will be implemented the new strategies on the quarter-on-quarter basis so that the company will have a good growth in the Q4.
Now, the company is focusing on the product quality and the distribution of products to show the profitability in the next quarters. The company has always attention on the customer requirements and we are looking to expand its presence in the Middle Eastern and African regions to increase our contribution in the auto market, he said.
Ashok Leyland increased by 9 percent with the export sales of 5,263 units in the two quarters (May to September, 2015) against the 4,825 units in same period of last fiscal. Now, Ashok Leyland is looking to expand its market share percentage by initiating the proper business in the global countries.