Latest news with #AshokLeyland
TimesLIVE
2 days ago
- Automotive
- TimesLIVE
Ashok Leyland Phoenix cargo carrier arrives in Mzansi
Ashok Leyland is an Indian commercial vehicle maker which relaunched in SA in 2023 after last being sold here in the 1980s. One of India's largest bus manufacturers, the company was founded in 1948 as Ashok Motors and became Ashok Leyland in 1955 after an alliance with British Leyland, which also had manufacturing facilities in SA. The Dost single cab loader and Partner medium truck have been on offer in SA since 2023. They are joined by the new, mid-tier Phoenix with similar budget-conscious, no-frills workhorses. Phoenix With a price of R269,900, the new Phoenix single cab bakkie is squarely aimed at alternatives, including the Mahindra Bolero and Mahindra Pik Up single cabs. It is 5,025mm long, 1,842mm wide and 2,061mm high, but load volumes are the most obvious battle points in this niche. On this front it fights with a 2,950mm long, 1,750mm wide and 415mm high cargo deck rated with loading a max 1,850kg and available with drop sides. It's a three-seater cab with dash-mounted lever and controls, and power steering. It is powered by a 1.5 I three-cylinder diesel engine that outputs 59kW at 3,300rpm and 190Nm between 1,600rpm to 2,400rpm, paired with a five-speed manual transmission driving the rear wheels. Further mechanical wares include the front suspension with two-stage over-slung parabolic and double action shock absorbers in front and semi-elliptic items at the rear axles.
Time of India
3 days ago
- Automotive
- Time of India
Truck companies eye demand boost with ageing fleet on roads
Photo/Agencies CHENNAI: India's old trucks will help the commercial vehicle industry pick up speed on the demand highway. The average age of medium and heavy (M&HCV) trucks on Indian roads is currently at its highest at 10 years. According to truck manufacturing companies, this ageing fleet will translate into a "significant" increase in replacement demand . According to Icra's estimates, the average age of M&HCVs increased to around 10 years in FY23-25 after registering a gradual increase over the past years. "The elevated level of vehicle ageing was fuelled by deferment of new vehicle purchases by fleet owners during the pandemic period and also with the domestic M&HCV (trucks) volumes staying flattish y-o-y in FY24 and registering a 4% y-o-y decline in FY25," said Kinjal Shah, senior VP, Icra. "With this, the average M&HCV vehicle age presently remains the highest in the past two decades," added Shah. Already truck manufacturing companies are taking note of this opportunity. "The outlook for the truck industry in FY26 takes into account the all-time high ageing of the truck fleet, which means fleet replacement will definitely happen. The demand pull will be predominantly in the M&HCV segment because the fleet is higher vintage there," said Shenu Agarwal, MD & CEO, Ashok Leyland. Vinod Aggarwal, MD & CEO, Volvo Eicher Commercial Vehicles said, "Replacement demand will be very strong, particularly since with improved road infrastructure, the new trucks are running around 15,000km to 20,000km per month compared to around 8000km to 10,000km that older trucks manage." Newer products, packed with telematics, offer more rigorous usage and faster turnaround time, he added. Currently replacement demand is 60% of the medium and heavy truck sales. However, overall sales have still not reached the 2018-19 peak of 2,95,000 units (it was 2,48,000 units in FY25). Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 days ago
- Automotive
- Time of India
‘Ageing truck fleet will boost replacement demand in M&HCV market'
CHENNAI: India's old trucks will help the commercial vehicle industry pick up speed on the demand highway. The average age of medium and heavy (M&HCV) trucks on Indian roads is currently at its highest at 10 years. According to truck manufacturing companies, this ageing fleet will translate into a 'significant' increase in replacement demand as customers look for new technology and faster turnaround time from their vehicles. As per ICRA's estimates, the average age of M&HCVs increased to around 10 years in the FY2023-FY2025 period after registering a gradual increase over the past years. 'The elevated level of vehicle ageing was fuelled by deferment of new vehicle purchases by fleet owners during the pandemic period, and also with the domestic M&HCV (trucks) volumes staying flattish YoY in FY2024 and registering a 4% YoY decline in FY2025,' said Kinjal Shah, senior VP, ICRA. 'With this, the average M&HCV vehicle age presently remains the highest in the past two decades, which along with the mandatory scrapping of govt vehicles older than 15 years from April 1, 2023, augurs well for replacement demand in the medium term,' added Shah. Already truck manufacturing companies are taking note of this opportunity. Shenu Agarwal, MD & CEO, Ashok Leyland , said: 'The outlook for the truck industry in FY26 takes into account the all-time high ageing of the truck fleet which means fleet replacement will definitely happen.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Advanced Strategic Management IIMK ASMP Apply Now Undo The demand pull will be predominantly in the M&HCV segment because the fleet is 'higher vintage there,' he added. Industry estimates show that since FY2010, around 37 lakh trucks have been sold spanning BS0 to BS6 levels. In the last four years around 10 lakh BS6 trucks have been sold. There are another 8.5 lakh units of BS4 vehicles plying the roads. So for the balance around 50% of the vehicles sold in the last 15 odd years, the average age is more than 11 years. Not surprisingly, industry is gearing up for replacement demand to kick in. Vinod Aggarwal, MD&CEO, Volvo Eicher Commercial Vehicles: 'Replacement demand will be very strong particularly since with improved road infrastructure, the new trucks are running around 15,000 km to 20,000 km per month compared to around 8,000 km to 10,000 km that older trucks manage.' Newer products, packed with telematics, offer more rigorous usage and faster turnaround time, he added. Currently replacement demand is 60% of the medium and heavy truck sales. And while overall sales have still not reached the 2018-19 peak of 295,000 units (it was 248,000 units in FY25), the payload is going up. 'The M&HCV segment is migrating towards higher tonnage and payload wise FY25 truck sales is 10% higher,' said Aggarwal. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
4 days ago
- Automotive
- Business Standard
Demand and margin gains to power M&CV company Ashok Leyland's stock
Ashok Leyland's strong Q4 led by 5% volume growth and margin gains; focus on exports, non-CV business and cost control to support performance in FY26 Ram Prasad Sahu New Delhi The country's second-largest medium and heavy commercial vehicle (M&HCV) company, Ashok Leyland, posted a healthy operational performance in the March (Q4FY25) quarter. Higher volumes and a slight improvement in average selling prices helped drive gains on the top line. The company expects growth in some of the key segments within the commercial vehicle market in FY26. This, coupled with an increase in the non-CV share of revenue and its net cash position, will help the company maintain a steady revenue trajectory while exploring new growth opportunities. While the company has outperformed the Nifty Auto index over
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Business Standard
5 days ago
- Automotive
- Business Standard
Ageing truck fleet rekindle commercial vehicle makers' revival hopes
After several sluggish years, India's truck market remains in a challenging phase, with the average fleet age now at a historic high of 9 – 9.5 years — up from the earlier 7–7.5 years. This rise reflects a broader concern — weakening cyclical demand that has delayed fleet renewal across the industry. However, a turnaround may be on the horizon. Industry experts predict mid-single-digit growth in the Medium and Heavy Commercial Vehicle (MHCV) segment in FY26, driven by an expected uptick in replacement demand. Tempering optimism, truck owners, however, strike a note of caution. The transition from BS IV to BS VI standards led to a 50 per cent increase in truck EMIs, along with additional operational expenses and a persistent shortage of skilled drivers in the sector. 'We anticipate growth on the trucks this year, especially after two softer years. The fleet age is at its peak now, which should spur replacements,' said KM Balaji, CFO of Ashok Leyland. He pointed to a robust rebound in the bus segment, where sales rose from 53,000 to 64,000 units in just a year, and projected a similar mid-single-digit growth trajectory for MHCVs. Tata Motors echoes this sentiment. 'We expect single-digit growth across segments, with HCVs and buses slightly outperforming ILMCV and SCV pickups,' said Girish Wagh, executive director and head of commercial vehicles, during the company's Q4 earnings call. Despite the cautious optimism, truck owners remain wary. The transition from BS IV to BS VI norms has substantially raised costs —monthly truck EMIs have surged by 50 per cent, alongside additional operational and maintenance expenses. 'We now pay ₹90,000 in EMI for a 12-wheel truck, up from ₹60,000 before BS VI,' said K Arul, secretary of the Namakkal Taluk Lorry Owners Association. Namakkal is a key logistics hub in South India. The BS VI upgrade requires sophisticated emission control systems, including Diesel Particulate Filters and Selective Catalytic Reduction units — adding to both purchase and running costs. Meanwhile, a shortage of skilled drivers, despite salaries averaging ₹ 40,000 per month, continues to weigh on fleet operations. Another factor holding back demand is the post-Covid slowdown in freight movement. 'Freight hasn't recovered fully, and without that, there's no incentive to buy expensive new trucks,' Arul explained. The policy shifts may offer a glimmer of hope. The Vehicle Scrappage Policy, in effect since April 2022, mandates emissions and fitness tests for commercial vehicles over 15 years old. Non-compliant vehicles face scrapping, nudging operators toward new purchases. 'The average fleet age rose to 9.5 years due to extended use of vehicles by second owners who couldn't afford replacements,' noted Ravi Bhatia, President of JATO Dynamics. 'But this trend may reverse as policy and market pressures drive renewals.' Yet, fleet owners argue that incentives remain insufficient. 'Scrapping only gives us ₹3–4 lakh, while a new truck costs around ₹50 lakh. How can we bridge that gap?' Arul added.
