Ashok Leyland to increase prices of its vehicles by 10%
Published On Apr 10, 2017
The second largest truck manufacturer of the country Ashok Leyland has decided to go for a price hike of 10 percent across its product range. The recent Supreme Court move to halt the sales and registration of BS-III vehicles throughout the country starting April 1 is the major reason behind the price hike.
According to some sources, a 16 ton truck is now dearer by INR 1.90-2 lakhs. While on the other hand, multi-axle trucks will now bear additional cost of INR 2.40-2.50 lakhs, which translates to 8-10 percent increase. Ashok Leyland, the Hinduja Group Flagship brand witnessed 12 percent increase in its sales in March 2017 recording 18,682 units of total sales. The figure was 16,702 units in the corresponding month last year.
Although the light commercial vehicles sales were down by 1 percent registering 3,424 units as against 3,462 units in March 2016, the overall sales of the last fiscal in the same category were on a positive side recording a 4 percent growth. Also, the sales of medium and heavy commercial vehicles were pleasant with a 3 percent increase from the previous fiscal.
Ashok Leyland stated that the Supreme Court ban has affected the industry and the company is also doing its best to minimize the impact. The firm has already started working on the BS-IV vehicles since it came into effect. Regarding the disposing of the inventory, company is contemplating on upgrading the remaining stock to BS-IV, but also indicated that it comes with various challenges.
