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Business News/ Companies / Ashok Leyland sales rise 17% in August
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Ashok Leyland sales rise 17% in August

Sales of medium- and heavy-duty vehicles, which was one of the worst impacted segments during the economic slowdown, increased 18% to 5,830 units

After declining for 33 consecutive months, Ashok Leyland’s sales of medium and heavy trucks picked up in June. Photo: Ramesh Pathania/MintPremium
After declining for 33 consecutive months, Ashok Leyland’s sales of medium and heavy trucks picked up in June. Photo: Ramesh Pathania/Mint

Mumbai: Sales at Ashok Leyland Ltd, India’s second largest truck and bus maker, rose 17% to 8,331 units in August compared with a year ago, the company said in a filing to the stock exchanges on Monday.

Sales of medium- and heavy-duty vehicles—those with a gross vehicle weight of 16 to 49 tonnes, which was one of the worst impacted segments during the economic slowdown—increased 18% to 5,830 units. The company’s light commercial vehicles also saw a 14% increase in sales to 2,501 units.

After declining for 33 consecutive months, sales of medium and heavy trucks picked up in June, as an improvement in mining and a pick-up in manufacturing led to some revival in demand for commercial vehicles.

Sales of medium and heavy trucks, which include tippers and tractor trailers that are deployed for construction, mining and haulage, are often closely linked to economic activity. Weak growth in the economy along with legal hurdles faced by sectors such as mining had led to a sharp decline in commercial vehicle sales over the last couple of years.

Commercial vehicle sales declined to 180,000 units in 2013-14 from 345,000 units in the preceding year, according to industry lobby Society of Indian Automobile Manufacturers. The decline in sales of heavy trucks, which almost halved during this period, was steeper.

Ashok Leyland’s shares closed 6.02% higher at 38.75 on the BSE. The exchange’s benchmark Sensex index rose 0.86% to 26,867.55 points.

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Published: 01 Sep 2014, 04:41 PM IST
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