Expect commercial vehicle industry to grow by 8-10% this fiscal: Ashok Leyand

New Delhi: Ashok Leyland expects the domestic commercial vehicle industry to grow by 8-10 per cent this fiscal aided by record government spending on infrastructure projects and strong replacement demand emanating from core industries.

In his address to shareholders in the company's Annual Report for 2022-23, Ashok Leyland Chairman Dheeraj G Hinduja said the commercial vehicle sales this fiscal were expected to exceed the previous peak attained in 2018-19.

He noted that the Chennai-based commercial vehicle maker is fully prepared to take advantage of the anticipated opportunities without compromising on market share and profitability targets.

"Moving on, it is reasonably expected that in FY24, the demand is expected to exceed pre-COVID levels of 2018-19," he noted.

Government infrastructure spending, strong replacement demand and healthy traction from core industries like steel, cement and mining are expected to drive growth, Hinduja said. The company remains optimistic about its ability to beat the industry growth.

"FY 24 CV demand is likely to surpass the previous peak of FY 19. Your company believes that the CV industry in FY24 will grow by 8-10 per cent over FY23," it stated.

Last fiscal, Ashok Leyland sold 1,14,247 M&HCVs in the domestic market registering a growth of 75.5 per cent over FY22. Its LCV sales stood at 66,669 units, up 28 per cent over the previous year.

On the product and technology front, Hinduja noted that the company is making good progress in alternate propulsion development.

Switch Mobility, through which the company is positioning the electric vehicles, has gained considerable momentum in FY23 and has already made a mark in the industry, Hinduja stated.

The electric LCV is slated for introduction later this year, he added.