Ashok Leyland (ALL) has raised its sales outlook for the current fiscal on robust demand for commercial vehicles. The industry is expected to grow 30% to about 315,000 units during the year to March with ALL accounting for about 1 lakh units. That’s 11,000 units more than what the company itself had anticipated at the beginning of the year. However, margin guidance remains at 10-10.5% as the increase in input costs has kept pace with the price hikes. Prices of steel, tyres, forgings and alloy steel have risen sharply, taking away all the benefits of price hikes.
ALL increased prices by 4% between April and July in two rounds and then again earlier this month in a two-step process. The latest hikes make a Bharat Stage II (BS II) compliant vehicle costlier by about `31,000 and a BSIII compliant vehicle more expensive by Rs 62,000.
The company has an inventory of 9,000 BS II compliant vehicles, which can be purchased as these can be registered till the month-end. ALL expects much lower production levels in Q3, from about 9,000 units a month so far to 6,000-7,000 units a month.
crackcrack| Company Name | CMP |
|---|---|
| Ashok Leyland | 176.65 |
| Force Motors | 21874.95 |
| Olectra Greentech | 1221.80 |
| Tata Motors | 442.50 |
| SML Mahindra | 4015.90 |
| View more.. | |
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