With Indian economy showcasing recovery and Core sector businesses running strong, the commercial vehicle major Ashok Leyland believes the commercial vehicle sales to improve after a prolonged slump.
The company also discloses about its talk with investors to raise money for its UK-based electric vehicle (EV) arm Switch mobility, which will handle the company’s EV Business.
“All materials are starting to work properly. Ingredients that help recover demand include improved domestic economic activity, increased fleet utilization for carriers, increased availability of financing, and disposal policies that raise operating costs for older vehicles. “
Vipin Sondhi, managing director of Ashok Leyland
The commercial vehicle major in 2021 doubled its sale units as compared to last year and sold 41,866 vehicles between April and September this year. However, these sales figures were only one-third of the company’s pre-Covid sales, indicating that the company reported a consolidated loss in the first half of the ongoing fiscal year.
“We are losing money because the volume is not yet complete. [recovered]. So as things open up and the volume starts to grow, you will see that commercial vehicle manufacturers will become more profitable.”Gopal Mahadevan, Chief Financial Officer of Ashok Leyland
The low bus sales since the launch of Covid-19 is also a contributing factor to the Chennai-based company’s loss finances. However, experts predict that bus sales will slowly improve as offices and educational institutions open with higher vaccinations.
In the last quarter CV Maker pointed to signs of a recovery in demand. However, sales are sluggish. The company is also in talks with investors to raise money for its EV, according to Sondhi
“We will certainly be looking for investors. I think there are discussions going on with investors. What we’re looking for are the right partners, both strategic and financial,”
Recently, Tata Motors has raised $ 1 billion for EV passenger car arms. Other Indian automakers have also moved their EV business to another subsidiary, especially with the aim of involving investors for the clean vehicle business.