Ashok Leyland November CV sales up 5% YoY1 min read . Updated: 01 Dec 2020, 12:37 PM IST
- With light commercial vehicles (LCVs) continuing to drive volumes for the company, Ashok Leyland posted a 23% YoY growth in the medium and heavy commercial vehicles (MHCVs) segment
Mumbai: Chennai-based commercial vehicle manufacturer Ashok Leyland Ltd on Tuesday reported a 5% year-on-year rise in its total sales for November to 10,659 units.
The company sold 9,727 units in the domestic market, up 4% from the year-ago period.
With light commercial vehicles (LCVs) continuing to drive volumes for the company, Ashok Leyland posted a 23% YoY growth in the medium and heavy commercial vehicles (MHCVs) segment last month, suggesting an uptick in demand for heavy trucks.
Driven by the demand for its newly launched Bada Dost, the company has reported wholesale dispatches of 5,305 LCVs in November, up 31% YoY.
It also sold 4,238 MHCVs in November as against 3,447 units sold during the year-ago period. This comes on the back of improvement in economic activities during the festival season. The MHCV segment was the worst hit category through the pandemic that exacerbated the economic crisis.
At 15,419 units, Ashok Leyland’s cumulative MHCV volumes (April- November) are far below compared to year ago sales of 39,015 units.
The bus segment continued to be the underperformer as the company sold only 184 units, down 90% YoY. The management has attributed low demand for buses to covid-19 led disruptions with commuters shying away from using public transport.
The company posted a loss of ₹147 crore during the September quarter on subdued performance as against a profit of ₹39 crore in the year-ago period. In a call with Mint last month, Ashok Leyland’s chief financial officer Gopal Mahadevan had said the company expects demand for CVs to improve during the December and March quarters this fiscal.
“The government can continue to support the recovery in CV demand through sustained investments in infrastructure and scrappage policy," he had told Mint, citing that vehicle scrappage policy could trigger robust demand for MHCVs.