Ashok Leyland to invest USD61.54m in LCV Platform

Investing Rs 400 crore (USD 61.54m) to develop new products aligned with BS-VI emission standards.

Chennai: Ashok Leyland Ltd of Chennai, a commercial vehicle manufacturer is planning invest USD 61.54m over the next couple of years towards the development of new LCV platforms to meet requirements under BS-VI emissions standards which would get mandated from 2020.

Mr. Nitin Seth, president, LCV, Ashok Leyland Ltd said “At present, our products address only 38% of the overall market for LCV. We are investing Rs 400 crore (USD 61.54m) to develop new products aligned with BS-VI emission standards. This will enable us to cover 60-65% of the market. Results will start reflecting 2020 onwards,”.

More than 600,000 LCVs are expected to be sold in local market annually in 2020. “Post GST, the hub-and spoke model is being put into play by transporters. While higher tonnage trucks are being used to move goods, LCVs are being used for last mile transport. In India, LCVs currently account for 64% of overall sales of commercial vehicles compared to 70% seen globally. There is a lot of room to grow”, added Seth.

Ashok Leyland is working on reducing costs and developing alternate fuel and electric versions of LCVs to keep prices viable for buyers. Ashok Leyland has capacity to produce 50000-55000 LCVs at its facility in Hosur, Tamil Nadu.