homebusiness Newscompanies NewsAshok Leyland expects FY24 to be a record breaking year for the truck maker
Ashok Leyland expects FY24 to be a record breaking year for the truck maker
Ashok Leyland's MD & CEO, Shenu Agarwal, anticipates a record-breaking FY24 for the Indian commercial vehicle giant, attributing success to government infrastructure focus and a departure from historical cyclicality. Despite recent sales dip, Agarwal remains optimistic. In an exclusive interaction with CNBC-TV18, he highlighted the ongoing discussions on merging FAME and PLI schemes for electric vehicles, emphasising the company's decade-long EV commitment. Read to know more:
Indian commercial vehicle giant Ashok Leyland expects a 'record-breaking' FY24, driven by the government's focus on infrastructure and a shift away from the industry's traditional cyclicality, according to MD & CEO Shenu Agarwal.
In an exclusive interview with CNBC-TV18 at the Bharat Mobility Global Expo, Agarwal expressed optimism about the interim budget and the government's infrastructure push. "The last 3-4 years have been fantastic for the industry, and the government's infra focus has been a major contributor," he said.
Agarwal highlighted a significant shift in the commercial vehicle (CV) industry, indicating a move away from its traditional cyclicity. He said, "The cyclicity of the CV industry that has happened in the last 20 years will not happen again." This change is attributed to India's rapid growth and the swift implementation of policy reforms, signalling a new era for the sector.
Recent sales dip a temporary setback
Despite a recent dip in sales, with a 7% decline in January to 15,939 units compared to 17,200 units year-on-year, Agarwal remains unfazed. The sales downturn, particularly in the Medium and Heavy Commercial Vehicle segment, is seen as a temporary hiccup rather than a long-term concern.
"There is no overall demand slowdown," Agarwal said, attributing the decline to a high base in the last fiscal year and dismissing the potential long-term impact of macroeconomic events.
FAME & PLI - a potential merger?
Ashok Leyland is also keenly focused on the electric vehicle (EV) market, with the Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme playing a pivotal role. Agarwal suggests that merging the FAME scheme with the Production Linked Incentive (PLI) schemes could be beneficial.
He revealed ongoing discussions about the potential extension of FAME 3 to trucks, expressing enthusiasm for the government's serious consideration of electric trucks.
Ashok Leyland is also actively expanding its EV offerings. "We've been working on EVs for a decade," Agarwal revealed. "Our bus EV technology is mature, and we're the only one with an electric double-decker bus. We're focusing on extending our EV product range."
The company will soon release its FY25 outlook. On the upcoming full budget, Agarwal urged the government to maintain its current approach. "Consistency is key," he advised, "rather than adding new elements. Focusing on India's growth, its industries, and core sector investments will benefit the entire nation."
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