Shares of Ashok Leyland have come under pressure recently after the government brought in new axle norms for load carrying capacity.
Vinod Dasari, managing director of the company spoke to CNBC-TV18 about the new axle norms and its impact on the sector.
Dasari said that more than 60 percent of medium and heavy commercial vehicles (M&HCV) market will not be affected by new axle norms.
"Wonder why the government notified new axle norms now and not in 2020,", he said.
Talking about business, he said, “Several years ago our domestic truck business used to account for about 90 percent of our business. Today its only 60 percent of our business.”
“Our LCVs are growing at about 25 percent, very profitable, our exports are growing at about 25 percent. Our aftermarket which is extremely profitable is growing at about 25 percent and CAGR, it’s not just for the last one year, our foundry is profitable, our defence is growing at 25 percent,” he added.
He further said that we continue to focus on profitability but will not compromise market share.