Ashok Leyland Aims to Sell 500 Electric and LNG Trucks in 2024, Eyes Growing Demand for Greener Vehicles
Ashok Leyland, India’s second-largest commercial vehicle manufacturer, has set an ambitious target of selling around 500 electric and LNG trucks by the end of 2024. This move comes as e-commerce giants like Amazon and Flipkart, as well as large logistics firms, strive to meet their Environmental, Social, and Governance (ESG) goals, driving up demand for greener trucks, particularly for last- and middle-mile transportation solutions.
The Indian market is expected to witness exponential growth in electric and LNG trucks, with estimated sales of 4,000 to 5,000 units by the end of this financial year. Ashok Leyland is poised to capture a significant share of this market, translating to around 500 trucks running on alternate fuels, including electric and LNG variants.
Sanjeev Kumar, President of Medium and Heavy Commercial Vehicles (MHCV) at Ashok Leyland, highlighted the challenges and opportunities in the electric truck sector during the company’s recent ‘Mini Expo’ in Mumbai. Kumar noted that the biggest challenge for electric trucks is managing the total cost of ownership, which is currently higher than that of diesel trucks. However, companies prioritizing ESG compliance are willing to invest in eco-friendly alternatives, and the required charging infrastructure is being put in place.
Ashok Leyland’s modular approach to electric truck design is a key differentiator in the market, allowing the company to tailor its trucks to different market needs and meet global standards. This approach has generated growing interest in electric trucks, with customers recognizing the value of Ashok Leyland’s modular products.
Despite the optimism surrounding electric and LNG trucks, the Indian MHCV market faces challenges, including a slowdown in growth to 0.7% in FY24 from 30.7% in FY22 and 28.7% in FY23. However, Ashok Leyland remains bullish on the future prospects of the category, citing an unexpected 10% growth in the first quarter of FY24 and the resumption of business activities with the new government.
The easing of commodity prices is a positive factor for the commercial vehicle industry, which will help Ashok Leyland control costs. This could lead to competitive pricing in Electric Commercial Vehicles and conventional fuel-class trucks, boosting demand. Ashok Leyland is confident in its strategy, focusing on alternate-fuel vehicles, and is well-positioned to achieve its ambitious sales target in 2024.
Source By:- https://trucks.tractorjunction.com/
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