Ashok Leyland sales dropped by 8 Percent in May

Home-grown commercial vehicle manufacturer Ashok Leyland has recorded 8 percent fall in sales in May 2017. Company’s total sales last month stood at 9,071 units as compared to 9,875 units same period last year. The medium and heavy commercial vehicle division of the company witnessed 18 percent drop registering a total sales of 6,139 units as against 7,469 in May 2016.

However, the light commercial vehicle space of Ashok Leyland counterbalanced the scenario by registering 21.86 percent growth. Company sold 2,932 units of LCVs last month as compared to 2,406 units in the corresponding month last year. The company has been exceptionally performing in terms of revenues. In the last fiscal, Ashok Leyland’s revenues swelled to INR 21,332 crore as compared to INR 19,993 crore in 2015-16, an increase of 7 percent. On the other hand, the standalone net profit jumped threefold to INR 1,223 crore as against INR 390 crore in FY16.

“The highlight for us this year is the growth in profits and our pan India market share. Our continued focus on controlling costs has paid rich dividends and helped us achieve a double-digit EBITDA for the 9th straight quarter. We launched BS4 engines with the AL’s iEGR technology which is best suited for our customers, especially in developing economies. We are confident that this unique technology will help enhance profits of our customers and grow our share”, commented, Vinod K. Dasari, Managing Director, Ashok Leyland Limited.

During the fiscal 2016-17, company’s medium and heavy commercial vehicle sales volumes shot by 3 percent to 1,13,296 while the LCV segment witnessed 4 percent increment recording 31,770 units. Company will be launching more products in coming years and will be exploring new markets to get to the list of global top 10 heavy vehicle manufacturers.