Ashok Leyland sees high enquiry from fleet operators amid consolidation

Commercial vehicle maker Ashok Leyland has been seeing a high number of enquiries from fleet operators amid the segment going through a consolidation phase, the company has said. The company is also expecting the medium and heavy commercial vehicle (MHCV) segment to grow in a single-digit this fiscal as against earlier estimates of a flat growth, Sanjeev Kumar, President for MHCV, Ashok Leyland said on Friday here.

Ashok Leyland is hosting a two-day ‘Mini Expo’ in Navi Mumbai, showcasing its diverse line-up of vehicles, including trucks and buses, in its MHCV portfolio as well as products.

Mumbai is among the 11 exclusive locations across India selected for this expo.

The MHCV segment comprises multi-axle rigid trucks, haulage trucks, tippers and trailers.

Prior to Covid, the mix between the fleet and retail customers would be in the 40:60 ratio, which has been changing now, said Prasad.

“The market is going through a consolidation where … they have the advantage of income, in the cost of acquiring assets as well in terms of GST. So, now there is a distinct advantage for fleet operators. We are seeing high (number of) enquiries from the fleet operators,” said Prasad. The order sizes from the fleet operators have also grown, he said. Stating that he was expecting a flat growth while planning for the year, Prasad said, “The first quarter has been intelligible. Q1 saw a growth of around 8 per cent. The capex is happening in the CV (commercial vehicle) segment, the government is settled down, GDP growth is positive and all core industries are also growing well.”

“So, the overall expectation is that the CV industry should grow this year in a single digit,” Kumar said.

The ‘Mini Expo’ in Mumbai marks a significant milestone. It is an opportunity for customers to experience Ashok Leyland’s capabilities in driving the future of mobility, he said.

“We are confident that our vehicles, coupled with our extensive aftermarket solutions, will demonstrate our dedication to providing comprehensive transportation solutions to our customers,” Kumar said.

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