Ashok Leyland's November sales came in marginally below expectations. At an aggregate level, it is the seventh straight month of improvement in sales, but the company is not getting enough buyers for its buses.
“Truck segment demand coming back due to movement of cement and steel, but the growth is yet to be seen in the bus segment,” said Anuj Kathuria, COO of the company in an interview to CNBC-TV18.
“The growth is seen in intermediate commercial vehicles and it continues to be there and on the other side the growth is also coming in from tipper segment, both in road sector and mining activity,” he said.
According to Kathuria, operators will be looking to replace some old vehicles with BS-VI vehicles.
“The cost of ownership is lower for BS-VI vehicles,” he said.
Kathuria expects margin to improve quarter on quarter (QoQ), but cautioned that higher commodity prices could limit gains.
For entire interview, watch video