Ashok Leyland Shares Decrease Due to 6% Drop in August Sales
Published On Sep 06, 2016
Last month, one of the leading CV makers, Ashok Leyland depicted a six percent drop in sales as compared to the previous year, which in turn impacted its stock market repute. Shares of the company fell by 3.5 percent.
Declining truck sales have caused a concern among stakeholders in the trucking industry. After a good start at the beginning of this fiscal year, sales slowly started decreasing through the end of Q1. Sales registered a decline of 7.6 percent in July 2016 on YoY basis, worrying investors in the commercial vehicle (CV) segment.
The major reason behind Ashok Leyland’s drooping sales can be attributed to a drop in sales of medium and heavy commercial vehicles. The company registered sales numbers of 10,897 units in August as against 11,544 units sold in the same period last year. As a result, Ashok Leyland’s share price stood at INR 84, declining by 3.5 percent.
Overall sales of heavy commercial vehicles dropped by eight percent over the year, registering a sale of only 8,201 vehicles in August.