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Chennai , Oct. 7

ASHOK Leyland Ltd has sold 20,360 vehicles in the first half of this financial year, a 28.7 per cent growth over the 15,821 vehicles it sold in the first half of the previous financial year. The company's sales at 4,615 vehicles in September 2003 witnessed a 40.6 per cent growth over the 3,283 units it sold in the same month last year.

According to a company press release, the sales in the first half of this year is the highest ever in any first half. The release quoted Ashok Leyland's Managing Director, Mr R. Seshasayee, as saying that "market demand remains buoyant and we are stepping up production".

The release said that the sales growth in September 2003 over the same month last year was largely helped by a 50.2 per cent increase in domestic Medium Duty Vehicle (MDV) goods segment - 3,243 units against 2,159 in September last year. Exports grew 21.3 per cent to 244 units against 201 vehicles last year.

Of the cumulative volume of 20,360 vehicles in the first half of this year, the release said that MDV goods, at 13,943 vehicles, were up 40.9 per cent against the 9,894 sold in the same period last year; MDV passenger vehicles, at 5,080 vehicles, were up 5.5 per cent, against 4,813 previously. Exports grew 15 per cent, to 1,155 units against 1,004 vehicles in the first half of last year.

When contacted, Mr T. Anantha Narayanan, Executive Director - Finance, said that the market had been buoyant from October-November last year itself. This was due to three reasons: continued investment in infrastructure; increase in foodgrain movement, especially in the North, aided by the relaxation in inter-State movement of food grains; and, some States had started enforcing the ban on vehicles more than 15 years old plying on the roads. This, he said, had spurred the replacement market as operators found it more viable to use newer vehicles. The low interest rate regime had also helped increase sales, particularly for the replacement market.

Normally the second half of the year is the busy season for commercial vehicle sales and with the first half being buoyant, Ashok Leyland expected market conditions to continue, Mr Anantha Narayanan said. Accordingly, it was stepping up production from about 3,000 vehicles a month to 4,000 a month now.

The growth was coming mostly from the MDV segment as the current infrastructure conditions called for only this range of vehicles. However, once investment in improving the feeder road network starts, there would be a growth in the light commercial vehicle segment also.

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