Ashok Leyland, a Hinduja Group flagship firm, will channel its capital expenditure in direction of creating numerous different gas applied sciences for business autos over the following 18 months, at the same time as it really works on reducing growth prices with companions, govt chairman Dheeraj Hinduja mentioned.
The corporate, identified for its vehicles and buses, has earmarked a capex of ₹600-700 crore for this monetary yr, and a big a part of will probably be directed in direction of creating merchandise with different gas techniques, corresponding to hydrogen gas cell buses, hydrogen-powered inner combustion engine (ICE) vehicles, electrical intermediate-trucks, in addition to autos operating on compressed pure fuel (CNG) and liquefied pure fuel (LNG).
Leyland’s net-zero emissions subsidiary Swap Mobility has rolled out a variety of electrical mild business autos (the IeV vary) for last-mile transportation. Individually, Leyland can be investing in creating a sub two-tonne business car class.
“Our capex requirement for this yr is within the vary of ₹600-700 crore, and a whole lot of it will this different gas growth. Our main capex programme occurred a number of years in the past after we developed Avatar Modular vary, and Bada Dost. Now, we’re trying on the sub-two-tonne truck however on this monetary yr and the following 18 months or so, the main focus is on different gas varieties. We’ve got collectively developed a product with NTPC—a hydrogen gas cell bus. We’ve got developed a hydrogen ICE truck with Reliance Industries,” Hinduja mentioned.
“In lots of respects, we’re taking a look at partnerships the place clients require a product and we develop the product with them as nicely. This not solely improves our total growth value, however we get the client to make use of the product instantly. I do see this quantity (capex) rising over the following few years as we go ahead,” Hinduja added.
“Our competitiveness will depend on these different gas autos. We don’t need to put a (capex) quantity for it proper now, as it would seem that we’re spending a lot on growth, whereas the necessities needs to be so much increased. One key facet that we at all times see to is how we will develop in probably the most cost-effective method, and that’s the place the innovation and agility that Ashok Leyland is thought for come into play. That’s why a quantity by way of funding may not be reflective of our true effort.”
In its seventy fifth yr of operations, Ashok Leyland can be seeking to construct a “full” portfolio of sunshine business autos to fill gaps the place it isn’t at present competing, he mentioned. The corporate additionally sees alternatives to be a big international participant with export volumes rising steadily, Hinduja added.
“Our final objective is to make sure we’ve got a product for all segments of this market. So, proper from a sub-two-tonne truck to the 55-tonne phase, wherever there are pockets we’ve got so far not been capable of fill, that’s our first requirement. Past that, we’re very actively working towards ensuring our LCV vary turns into a whole portfolio.”
“Though (LCV) volumes could be declining, they’re nonetheless very excessive. We’ve acquired near 35% of the market. Being a business car producer, desirous to have merchandise obtainable in all classes, we should be centered on giant quantity of autos. I’d say the key is that India will at all times be a really cost-competitive market, and our strategy aligns with it,” Hinduja mentioned.
Supply: Live Mint