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Ashok Leyland on Wednesday indicated that it would pursue growth opportunities in a few non-truck business segments in the near term as it awaits normal recovery in the medium and heavy commercial vehicle segment, which has been battered by Covid-19.
“While we were hopeful that market conditions would look up in FY21, the outburst of Covid-19 pandemic from March 2020, caused an adverse impact on all sectors of the economy and it is difficult to predict with certainty as to when normalcy would be restored and what form the ‘New Normal’ would take,” Dheeraj Hinduja, Chairman of Ashok Leyland, said while addressing the company’s 71st annual general meeting through virtual mode.
The company sees an opportunity in the bus segment due to the impact of Covid-19. “Travel by buses should no longer be in the overcrowded conditions of the past. Bus services should be run as per appropriate capacities and people distancing norms. We are keen to engage with the Central and State Governments and other stakeholders to define viable solutions, including meeting potential demand for various types of buses,” he added.
AL sees light commercial vehicle (LCV) as the next enabler of growth and it is gearing up to launch its new LCV range in the next couple of weeks.
Defence & EVs
Along with the new LCV and AVTR platforms, a new range of buses is also in the offing strengthening the product portfolio for international operations for a greater presence in the traditional SAARC, West Asia, Africa markets as well as in ASEAN which will be the new thrust area.
Another growth area is the defence segment where the company is already one of the largest providers of logistic vehicles to Indian armed forces. In addition, feasibility of new opportunities afforded by the recent government announcements are being seriously examined.
Dheeraj Hinduja also highlighted the company’s ambitious plans in the electric vehicle segment on a global level. With its UK-subsidiary Optare pioneering in electric buses and other vehicles, Ashok Leyland is also planning an electric variant of its upcoming LCV for the international markets.
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