Ashok Leyland, the Indian flagship of the Hinduja Group, reported a Profit After Tax (PAT) of INR 1,990 million, on Thursday, for the quarter vis-à-vis a loss of INR 830 million the same period last year, and achieved a market share of 32 percent in Q2 FY23.

Ashok Leyland claims that the revenues for the quarter stood at INR 82,660 million vis-à-vis INR 44,580 million in Q2 FY22. The company’s domestic MHCV volume at 25,475 numbers grew by 113 percent over the same period last year (11,988 numbers), which is more than double the industry growth. This helped Ashok Leyland achieve market share gains of 9.6 percent in the quarter.

Furthermore, according to the Indian multinational automotive manufacturer, its domestic LCV volumes for Q2 FY23 at 17,040 numbers is higher than Q2 FY22 by 28 percent (13,328 numbers). The export volumes (MHCV and LCV) for Q2 FY23 at 2,780 numbers is higher than Q2 FY22 by 25 percent (2,227 numbers). The company also reported an EBITDA of INR 5,370 million (6.5 percent) in Q2 FY23 vis-à-vis INR 1,350 million (3.0 percent) for Q2 FY22. Plus, Ashok Leyland stated that debt was at INR 26,770 million in Q2 FY23. Debt equity was at 0.37 times in Q2 FY23, as compared to 0.48 times in Q2 FY22.

As per Ashok Leyland, the company also saw a healthy demand for the AVTR range, and this demand is expected to further improve, mirroring the expected increase in economic activity. In the LCV segment, the Bada Dost has been well accepted by customers, and the company is ramping up production in line with market demand. Going forward, Ashok Leyland claims that last-mile connectivity demand, propelled by e-commerce, is likely to continue supporting ICV and LCV truck volumes. Other businesses like aftermarket and power solutions businesses continue to contribute to the top line of the company.

Sharing his thoughts, Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said “Despite global recessionary trends, the Indian commercial vehicle market continues to grow well, and the industry has seen strong volumes in Q2 FY23 over the same period last year. We see the demand continuing in all segments of trucks and passenger vehicles, and we remain confident and optimistic about the future. Our robust market share growth exemplifies the technological leadership of Ashok Leyland. We continue to build competitive products and organisational capabilities for future products using alternate fuels.”

Adding to this, Gopal Mahadevan, Director & CFO, Ashok Leyland, said, “While we will pursue growth, we want to do it profitably and sustainably, and the team continues its focus on operating costs and margins. We have been driving our other businesses like aftermarket, power solutions, defence and digital customer solutions, that have contributed increasingly to our revenue.” 

Chennai-based automotive major Ashok Leyland has announced that its defence business has bagged multiple orders valued over INR 7 billion. The company has bagged orders to supply vehicles for troop transportation, logistics and other other specialised mobility requirements under the Close-in Weapon Systems (CIWS) program.

The contract orders will see Ashok Leyland supply vehicles with serious off-roading and manoeuvrability capabilities such as the Stallion 4x4, Stallion 6x6, Short Chassis Bus and Mobility System Travelling Platform.

Shenu Agarwal, MD & CEO, Ashok Leyland, said, “For decades, Ashok Leyland has been a trusted partner in defence mobility. We are immensely proud to have secured these new orders, which reinforce Ashok Leyland’s leadership in the sector and reaffirms our commitment to deliver cutting-edge solutions for the armed forces. The defence business remains a key pillar of Ashok Leyland’s future growth.”

Amandeep Singh, President – Defence Business, Ashok Leyland, said, “As a proud proponent of ‘Atmanirbhar Bharat,’ we are committed to strengthening India’s defence capabilities through indigenous design and manufacturing in the Defence mobility sector. Our vehicle platforms ranging from 4x4 to 12x12, packed with contemporary Defence specific requirements, including armouring, known for their versatility and durability, remain the backbone of logistics and specialist needs of Armed Forces. As the largest supplier of logistics vehicles to the Indian Army, we take immense pride in supporting our forces and remain committed to delivering these orders on time. Our future Defence order and tender pipeline is also quite robust.”

The 2,900 Gurkha vehicles that Force Motors will supply to the Indian Defence Forces are tailored to meet the diverse operational requirements of both the Indian Army and the Indian Air Force. They are in mission-ready conditions and engineered to perform in demanding defence environments as Light Strike Vehicles (LSV)
The salient properties of the vehicles include a robust build, reliable drivetrain and advanced 4x4 capabilities. Engineered to ensure successful operation in diverse terrains ranging from deserts to mountainous regions, the vehicles add to the count of many vehicles that Force Motors has supplied over the years to the defence forces. These vehicles have excelled in the most extreme environments, offering unparalleled performance, superior ground clearance, the highest water wading capacity in its class and exceptional manoeuvrability. 
Stating that they are honoured to continue our association with the Indian Defence Forces through this substantial order,” Prasan Firodia, Managing Director, Force Motors, mentioned, “Our vehicles are designed with focus on quality, reliability, ruggedness, and performance, aligning perfectly with the operational needs of our defence personnel. This order is a testament to the trust and confidence Indian Defence Forces place in Force Motors.”
 

Eicher Trucks & Buses, part of VE Commercial Vehicles (VECV), has inaugurated its first exclusive dealership for the Eicher Pro X range in Thane, Mumbai.

The new dealership features an interactive digital display and is strategically located around key logistics hub, industrial areas and business districts in the financial capital of India.

The Eicher Pro X is the company’s first electric offering in the small commercial vehicle space, which can be customised (cargo body design, load decks, variants and colour options) to meet the diverse customer needs. 

SS Gill, Chief Commercial Officer, VECV, said, “Today marks a milestone in our journey towards customer excellence. The inauguration of the first Eicher Pro X dealership with AV Motors is not just the unveiling of a new facility, but a testament to our commitment to shaping the future of last mile logistics. This dealership represents the intersection of technology and trust, offering our customers an enhanced experience, backed by best-in-class Eicher Pro X small trucks.”

Ramesh Rajagopalan, EVP, Customer Service, Retail Excellence and Network Development, VECV, said, "The launch of the Eicher Pro X range marks a significant milestone in our journey towards shaping the future of logistics with next-gen, sustainable solutions. The inauguration of the Eicher Pro X exclusive dealership reaffirms our commitment to delivering innovative products and a superior retail and service experience. We wish the AV Motors team the very best as they begin to serve Eicher customers in this region"

The new facility is also connected to Eicher’s Uptime Centre, which enables maximum vehicle availability and operational efficiency. The company shared that its customers will also benefit from highly trained technicians, doorstep service bikes and GPS-enabled on-road breakdown support. The dealership also features dedicated EV charging infrastructure and service bays.

Chennai-based commercial vehicle major Ashok Leyland has denied any plans of finalising to acquire majority stake in SML Isuzu. The company issued the statement as clarification to media reports claiming that talks of a deal among Ashok Leyland, SML Isuzu and Japan’s Sumitomo Corporation were at an advanced stage. 

At present, Sumitomo Corporation has a stake of roughly 44 percent in the Indian unit of Isuzu. In comparison, Isuzu itself holds 15 percent. 

While Ashok Leyland shares shot up by 4 percent based on the reports, SML Isuzu’s indices also rose by 6 percent on the BSE.

In a formal statement addressed to the Stock Exchange, the reports were dismissed as ‘factually incorrect.’ 

SML Isuzu’s expertise in lighter vehicles and Ashok Leyland’s strong position in the commercial vehicle segment would have been ideal and these factors formed the basis for the speculative reports by investors/analysts.

SML Isuzu traces its roots back to 1983 when it was incepted as Swaraj Vehicles to manufacture light commercial vehicles in Punjab. The company currently manufactures trucks, buses and special application vehicles in India.