Leading truck and bus-maker Ashok Leyland, which has reported strong growth in profit and revenue for the September 2022 quarter, seeks to maintain its market share of 30 per cent plus in the medium and heavy commercial vehicle (M&HCV) market, supported by acceptance of its new product range, plugging of gaps in its portfolio and network.

The company has achieved a market share gain of 9.6 per cent in the quarter and the total market share touched 32 per cent in M&HCV segment in Q2 of this fiscal. Along with network expansion, strong acceptance of its Avtar range of vehicles contributed to the market share growth.

“Our products have been performing well and there has been a lot of work going on since last one year on the network expansion, especially in some of our weaker zones in northern and eastern India. Fortunately for us, it has all been working well – the combination of the network along with the products,” Dheeraj Hinduja, Executive Chairman, Ashok Leyland told businessline.

The company addressed some gaps in its product portfolio, particularly in the ICV (intermediate commercial vehicle) segment. It had a setback last year as there was a big shift to CNG models in the ICV market due to the lower price of CNG and delays in the introduction of its CNG models.

In Q4, it introduced our CNG models. But since then, there has been a shift from CNG to diesel due to CNG price increases. With new launches, it achieved growth in its market share in the ICV segment – from low teens a few years ago to about 25 per cent now.

“Going forward, we will not only be able to maintain market share but also grow it further. I would say that 30 per cent plus is something that we are confident of maintaining. But we will not do any deep discounting to win market share. Even if competition discounts to win market share, we will desist from doing it,” said Hinduja.

Delay in Switch’s fund raising

Discussing Switch Mobility, he said the plan to bring in strategic investors into the company with fund raising in the range of $200-250 million was being delayed. “It has taken us a little longer than expected because we want to ensure that we have the right partner. But the company is hopeful of finalising it soon. Meanwhile, it continues to invest in new product developments,” he added.

“The company is planning to launch electric variants of its small commercial vehicle – Dost and Bada Dost during mid-2023, said Gopal Mahadevan, Director & CFO, Ashok Leyland.

Strong performance

The Hinduja flagship has reported robust numbers for the September 2022 quarter. It posted a net profit of ₹199 crore in Q2 of this fiscal when compared with a net loss of ₹83 crore in the year-ago quarter. 

Revenue from operations grew a whopping 85 per cent at ₹8,266 crore in Q2 of this fiscal when compared with ₹4,458 crore, helped by significant growth in sales of trucks on the back of robust demand in the market.  

“We have been driving our other businesses like aftermarket, power solutions, defence, and digital customer solutions which have contributed increasingly to our revenue,” said Mahadevan.

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