Ashok Leyland hopes to double its international sales of commercial vehicles over the next three-five years, according to Gopal Mahadevan, Chief Financial Officer.
Vehicle exports, including kits that are assembled overseas, now account for about 15 per cent of its business. The company hopes to get the number up to 30 per cent with major markets being SAARC region, West Asia, Africa and the ASEAN. This is integral to offsetting the cyclical ups and downs in the domestic commercial vehicle market, he said.
Domestic sales of medium and heavy commercial vehicles now account for more than half its business. Even allowing for the year-on-year growth, the company hopes to bring down the dependence on the domestic market to about 30-40 per cent in the next 3-5 years, he said.
The commercial vehicle manufacturer hopes to emulate the success of its Ras Al Kaimah assembling unit in the UAE with similar truck and bus assembling units in Africa. It has a product plan in place and is exploring opportunities for three-four units, he said.
Mahadevan said the company will also expand its offerings to the Defence sector, bus and components businesses.
He was briefing media persons on the company’s performance in the first quarter of the current year and the immediate outlook.
Buoyed by a strong growth in volumes in the first quarter when its commercial vehicle sales outstripped industry performance nearly twice over, he said Ashok Leyland is confident of sustaining the growth.
Against a total industry sales volume of 62,076 vehicles representing a 23 per cent growth in the April-June quarter, the Hinduja Group company had sold 18,600 units which is a 45 per cent growth. Its market share had also increased to 30 per cent (25 per cent) during the quarter.
Commercial vehicle manufacturers had expected a 10-15 per cent growth in industry in the current year but with the current traction it is possible the industry could grow by about 20 per cent going by the traction in the first quarter, he said.