Ashok Leyland clocks double-digit growth in February

Ashok Leyland’s total vehicle sales have increased 20 percent to 12,776 units in February, 2021 on a year-on-year basis (February 2020 sales at 10,612). Even on a month-on-month basis, the leading CV maker clocked a slight three percent increase from 12, 357 units sold in January.

The total M&HCV sales in February are up 5 percent year-on-year to 7114 units (February 2020 sales – 6745 units). If exports are included, the total vehicle sales in February is up 19 percent to 13703 units (February 2020: 11,475 units).

The uptrend is in continuation of the growth during Q3 on the back of the  i-Gen6 (Mid-NOx) technology launch. During Q3 FY2021, Ashok Leyland’s truck volumes have grown at almost twice the rate of the industry, on a year-on-year basis. The market share too has therefore improved to 28.1 percent as against 24.9 percent in Q3 FY2020. Sequentially, over Q2FY2021, the company’s MHCV truck volumes have more than doubled in Q3FY2021 which is in line with the TIV growth, therefore resulting in market share retention at 28.1 percent. The company has also brought down net debt sequentially to Rs 2880 crore in Q3 from Rs 3,076 crore in Q2 FY2021.

The company’s share price also responded positively to the increase in monthly vehicle sales and gained in intra-day trade.