Kolkata: Indian commercial vehicles maker Ashok Leyland’s sales growth is seen down by 3-5% if poor monsoon persists in the remaining period of the current fiscal,” a senior official said.
“The company is targeting a sales growth of around 7% in the second half of the current fiscal over the same period last year, under the normal circumstances,” Rajiv Saharia, executive director-marketing, Ashok Leyland said.
“But if the monsoon happens to be poor, the sales growth might be impacted by 3-5%,” he said.
“For our country, the worst seems over. For the industry, demand for medium and heavy commercial vehicles can swing anywhere between plus and minus 5% in the current year depending upon the monsoon,” he said adding: “If the overall economic activity is affected, we would be part of it too, but we are confident of outperforming the industry.”
“Going by the coming trends the company is seeing a revival in demand on account of revival in certain sectors like mining, cement and construction,” Saharia added.
In addition to this, there is an increase in demand in the passenger vehicle segment from the JNNURM (Jawaharlal Nehru Urban Renewal Mission) projects,” he said.
“JNNURM has placed orders for around 10,000 buses, of which Ashok Leyland would supply 5,200 buses in the current fiscal,” Saharia said.
“Ashok Leyland commands over 57% of the heavy passenger vehicles market in India,” he said.