Comments
Ashok Leyland has said that it expects to sell 36,000 units of its light commercial vehicle, Dost, this year. It also expects to sell 110,000 units of medium and heavy commercial vehicles.
The Dost is manufactured by a joint venture of Ashok Leyland and Nissan, in which the former holds 51 per cent. The LCVs are distributed over Ashok Leyland’s dealership network, for which Ashok Leyland gets a commission from the JV.
Ashok Leyland has told analysts that it earns between Rs 15,000 and Rs 18,000 on each Dost sold over its network. This translates to a commission income of Rs 54 crore to Rs 65 crore if the company achieves the targeted sales.
An analyst report of Angel Broking has said that the medium and heavy commercial vehicle demand is near the bottom. “With easing of interest rates, we expect pick-up in industrial activity, leading to a rebound in MHCV sales,” the report says.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.