Chennai-based Ashok Leyland reported a 12% jump in its whole sales at 13,852 units during May 2024, as against 12,378 units in May 2023.
The M&HCV trucks segment went up by 1% to 6648 units during May 2024, as against 6573 units in May 2023. Likewise, in the MHCV buses segment, the company witnessed an 87% surge to 1903 units in May 2024, compared to 1017 units in May last year.
In the LCV category, the company witnessed a growth of 11% to 5301 units in May 2024, as against 4788 units in the comparable period.
The development comes against the backdrop of Ashok Leyland Ltd, raising its capital expenditure (capex) plans for fiscal 2025 (FY25) on stronger-than-anticipated commercial vehicle demand.
Managing Director and CEO Shenu Agarwal, speaking on a post-earnings call, said the company now expects to spend between Rs 500 crore and Rs 700 crore in FY25, up from around Rs 500 crore in the previous year. This revision comes despite earlier concerns about a potential demand slowdown due to general elections.
Agarwal highlighted that the initial projections anticipated a tapering of CV demand due to the elections and related slowdown in infrastructure activities "However, positive economic indicators of past few months, particularly those from April, suggest a robust outlook" "We are equally positive on first half of FY25." said Agarwal during the call.