Ashok Leyland gets order for 552 buses for ₹500.97 crore from Tamil Nadu

In its press statement, the automaker said it had been the most preferred brand of TNSTC with more than 18,477 Ashok Leyland buses operational in its fleet.

“The new ULE buses boast state-of-the-art features like the powerful H-series 6-cylinder 4-valve 184 kW (246 hp) engine, a step-less entry, rear engine configuration, automatic transmission, front disc brake, electronically controlled front and rear air suspension, and an Intelligent Transportation System with CCTV, destination boards reflecting vehicle location, and tracking,” it added.

Sanjeev Kumar, President- M&HCV, Ashok Leyland, said: “Our ULE buses represent the epitome of technology and safety in the commercial vehicle segment.”

Under the project, funded by the German Development Bank (KfW), Ashok Leyland will commence the delivery of the buses from April 2024.

Following the announcement, Ashok Leyland shares traded nearly half a percent higher at ₹170.80 on BSE at 10:14 am. So far in 2023 (year-to-date), the firm’s stock has given a return of almost 15% to its investors as against benchmark Sensex which has risen a little over 15% during the period.

Earlier this week, CLSA set a target of ₹238 with a buy call on the stock. The brokerage believes the commercial vehicle upcycle will continue as indicated by strong freight rates.

It pointed out that the tonnage growth in trucks is higher than volume growth, and that there has been a double-digit increase in freight rates and e-way bills.