Ashok Leyland rolls out new LCV range, looks to expand presence across domestic, export mkts

Hinduja Group flagship Ashok Leyland on Monday said it is looking to expand its presence in the light commercial vehicle (LCV) segment across domestic as well as international markets with the launch of first product based on its all-new platform.

Hinduja Group flagship Ashok Leyland on Monday said it is looking to expand its presence in the light commercial vehicle (LCV) segment across domestic as well as international markets with the launch of first product based on its all-new platform. The company, on Monday, rolled out 'Bada Dost' LCV in two trims -- i4 and i3 -- with payload capacity of 1,860 kg and 1,405 kg, respectively.

The i4 variants are priced at Rs 7.79 lakh and Rs 7.99 lakh, while i3 trims are tagged at Rs 7.75 lakh and Rs 7.95 lakh (ex-showroom Mumbai). The new models, which come equipped with BS-VI engines, are based on the new platform on which the company has invested close to Rs 350 crore for development and manufacturing operations.

The new platform will allow the company to cater to both right-hand and left-hand drive markets across the globe. "Today marks a milestone for us as we move towards our vision of being amongst the top ten global commercial vehicle makers.

"The new in-house developed platform is a key part of our long-term LCV strategy aimed at positioning the company as a serious and significant player in the segment," Ashok Leyland Chairman Dheeraj Hinduja said. The company's range will now be available in both right-hand drive and left-hand drive options, enabling it to look at international markets more aggressively, he added.

"Plans are also on for introduction of electric versions in due course," Hinduja said. The commercial vehicle maker is launching 'Bada Dost' initially in seven states, and it will gradually be available pan-India over the next three months.

The vehicle is open for bookings and delivery through both -- physical and digital platforms. The company aims to start exports of the model from January next year.

"The launch of new platform puts us in a great position not only domestically but also to push through some of the geographies that we are associated with outside of the country. We can take it to those markets now because of the left-hand drive version being available," Ashok Leyland Managing Director Vipin Sondhi said. The LCV segment holds huge potential for the company, he added.

"LCV is one of our growth businesses accounting for about 40 per cent of our sales volume in FY20. It continues to grow this year as well," Sondhi said. When asked if it is the right time to launch new products in the market, he said right now LCV is the only segment in commercial vehicle space which is showing growth.

"It is (LCV segment) likely to continue to grow in the festive season, perhaps beyond that as well. Rural growth is driving it, then there is totally new segment -- e-commerce which has come up. We are moving onto the festive season and we think a positive momentum is there. So I think it is a perfect time to launch the new platform," Sondhi said. Ashok Leyland COO Nitin Seth said over the next 2-3 years the new platform would churn out a lot of new products for both left-hand and right-hand drive markets with multiple fuel options, helping the company expand its LCV portfolio.

The domestic market for LCVs is around 5 lakh units per annum, while export opportunity is close to 8 lakh units per annum, he noted. Ashok Leyland, which is the second largest commercial vehicle player in the country after Tata Motors, has a market share of around 18 per cent in the LCV segment.

Till now, the company had limited play in the LCV segment with its Dost range. With unavailability of left-hand drive option, Seth said the company till now exported products mainly to SAARC countries and few countries of Africa.

"With the help of left-hand drive and new generation vehicles, we can now reach out to other parts of Africa which we are missing today. We also want to reach out to many ASEAN countries which are clearly dominated by Japanese and Korean companies," he added. The company plans to roll out cargo vans for both domestic and international markets, based on the new platform, in the second phase, Seth said.