Ashok Leyland sold 2,321 vehicles (6,340 vehicles) in December, which was 63.4% lower than in December last year. Sequentially, the company sales fell by 31.6% in December 2008 over the previous month.
In the April-December period, the company sold 43,657 vehicles (55,998 vehicles), a fall of 22%. It sold 637 (4,153) medium and heavy commercial vehicle, goods carriers in December 2008, having registered a fall of 84.6%. In November 2008, the company sold 1,950 of these vehicles.
The only positive feature of December sales was exports. Ashok Leyland exported 424 (194) medium and heavy-duty cargo vehicles. However, it sold fewer 458 buses (638 buses) in the overseas markets.
The downturn was most stark in domestic sales of goods carrying medium and heavy-duty vehicles, which is regarded by some economists as an indicator of the health of the economy. We remain NEUTRAL on the stock.