February 16, 2022
Blog Admin
Ashok Leyland is working on a slew of vehicles in the alternative fuels such as CNG, LNG, and HCNG (hydrogen compressed natural gas) to cash in on the revival of demand in the commercial vehicles (CV) segment. The company, a Hinduja flagship commercial vehicle major, believes that due to an uptick in demand following the easing of the pandemic, opening up of the economy and thrust on infrastructure projects, alternative fuel vehicles would be ideal to push growth in the marketplace, as the fleet owners are now preferring economic vehicles on the back of high fuel prices.
Gopal Mahadevan, director and CFO, believes that with the opening up of the economy, the demand recovery for light commercial vehicles, M&HCV (trucks and buses) will be on course.
ICV accounts for 35-40% of total industry volume, of which CNG accounts for 35% that’s 10% of total industry volume. Truck owners are preferring CNG vehicles due to the rise in fuel prices. It is more economical than diesel.”
To address the growing demand for ICV CNG vehicles, Ashok Leyland had recently introduced the first of the trucks from the CNG stable – the Ecomet Star — based on the highly successful Ecomet platform. The company plans to launch further vehicles in Q4 of the current year under the CNG range.
The company’s EV arm Switch Mobility has been working on the electric LCVs and buses and is on the course of its development of products, both for Indian and global markets, he said. An eMaaS company is being set up with unique offerings for ownership.
Mahadevan believes for Switch Mobility, initially, about $200 million to $300 million will be required. It would be a mix of debt and equity.
After eight quarters and ALL was black in the back. however the sales volume has not reached the 2018-19 level.
On the international business, Mahadevan said Ashok Leyland is focusing on SAARC, Sri Lanka, Bangladesh, West Asia and South African markets with strategies such as large distributorships and loan support by financial institutions.