Ashok Leyland eyes 30% CV market share in FY23
New Delhi: Hinduja flagship Ashok Leyland is eyeing a strong comeback in the commercial vehicle segment this year as it looks to consolidate its position in the intermediate commercial vehicle (ICV) segment and reap benefits of enhanced demand for its modular AVTR range, as per a top company official.
The Chennai-based company is also betting on the overall improvement in the economic situation and gradual easing of supply chain issues to cross 30 per cent of the overall market share in the commercial vehicle (CV) segment in 2022-23. Having endured a few very tough quarters, the commercial vehicle major's overall market share hovers around 24-25 per cent. In an interaction, Ashok Leyland Executive Chairman Dheeraj Hinduja noted that the company is making efforts to increase its presence in the ICV range.
"ICV has not been our strongest area and our market share in that domain has been 20-21 per cent as compared to other segments like tractors where we are always plus 30 per cent," he noted. Hinduja stated that the share of ICVs, which used to constitute 21-22 per cent of the overall industry volumes, has now grown to 33 per cent. "So, naturally, this has affected our market share as well. Within this ICV segment, CNG has grown a lot with around 40 per cent of volumes coming from CNG," he added. The company has just recently launched CNG models in the segment, Hinduja noted. "So we are now feeling very confident that month-on-month our market share has been improving, in fact in January we closed at 28.8 per cent. So, with the products that we have already launched and the new products that we are launching, and this CNG and ICV, I think the team as a whole feels very comfortable that we will get back to our market share of over 30 per cent (in 2022-23)," he said.
Moving ahead, the gradual improvement in the chip supply situation is also going to have a positive impact on the light commercial vehicle vertical which has been most impacted by the shortage, Hinduja said.