Ashok Leyland to invest Rs.400 crore for LCV development
Ashok Leyland has decided to invest Rs.400 crore to develop new LCVs over the next two years, claim industry sources. They point at the CV maker’s strategy to triple its sales in the LCV segment by 2019-20 from the current 35000-36000 unit sales annually. Sources add that the company is keen to apply greater thrust now that the joint ventures with Nissan are behind it, in the domestic market as well as the export markets. With a medium-term allocation of Rs.400 crore, the company, claim sources, is looking at two platforms and several derivatives in right-drive and left-drive configurations. Looking at invading SAARC, GCC (Gulf Cooperation Council), Africa and Asean export markets with the new LCVs, Ashok Leyland is said to be looking at exports as a measure to de-risk from the cyclical nature of the domestic CV market. With current LCVs, Dost, Partner and Mitr, doing well, Ashok Leyland, is also expanding its sales network to 450 outlets and 150 dealers pan-India from the current 370 outlets and 113 dealers.