Ashok Leyland grabs 37.44% market share in FY’17
Published On Apr 17, 2017
The last fiscal year went through many ups and downs in the commercial vehicle industry. India’s second largest CV maker Ashok Leyland winded up the fiscal year 2017 on a satisfactory note capturing market share of 37.44% in the medium and heavy commercial vehicle category. This is the highest boost since the year 2001 when it reported a market share of 38 percent.
According to the company, it recorded 3% increase in the M&HCV category selling 113,296 units during fiscal year 2017, notwithstanding the adverse effects of demonetization that almost sank the truck sales for two months. The sales in March 2017 alone improved to 15,258 units due to pre-buying gush after the Supreme Court ban on the sales and registration of BS-III vehicles starting April 1. The sudden trigger in sales proved fruitful for the company.
CEO and MD, Ashok Leyland, Mr. Vinod K Dasari said that the company is delighted with the growth of 12% in March 2017 and the overall fiscal growth of 3% despite challenging situations. He emphasized on the fact that the significant growth was also due to new product launches and multiplication of dealerships in the north east region of the country.
The automaker has gradually cemented its position in the medium and heavy commercial vehicle market since FY’14 when its share was 30.07 percent. Talking about the BS-III vehicles inventory, according to a report by Edelweiss, Ashok Leyland had 10,664 units when the Apex Court order came into existence and out of that, only 1,000 units were with the dealers since it operates with them via cash and carry model.
The report also said that the unsold stock of 9,700 units will be exported. The remaining will be refurbished with BS-IV compliant engines while the BS-III engines will be dispatched to the replacement markets. The engines can also be used for other purpose such as generating set business. Following the ban on BS-III vehicles, Ashok Leyland has also increased the price of its trucks by 10%.