The light commercial vehicle (LCV) segment is looking promising, said Gopal Mahadevan, CFO of Ashok Leyland, in an interview with CNBC-TV8 while talking about Q4 FY21 numbers.
Hinduja group flagship company reported strong earnings for the March-ended quarter with revenue growth at 82 percent and its back in profit after four consecutive quarters of loss with a reading of Rs 377 crore.
“For us, the light commercial vehicles (LCVs) looks promising. The reason is that we have launched ‘Bada Dost’, which is a completely new segment. We have actually seen growth in the LCV business happening and growth in the market share as well because we have a new segment coming in over and above the ‘Dost’. Therefore, we are positive about LCVs,” said Mahadevan.
The company believes that India will be a very important market in the electric vehicle EV space and is getting ready for that wave.
"Our teams are working on hydrogen-powered fuel cells," said Mahadevan.
On the demand picture, the auto major has seen activity in cities pick up and that gives them confidence.
"E-commerce is also fueling the growth of light commercial vehicles because they are extremely critical to delivering to the doorstep of the customer,” he added.
Ashok Leyland is internally budgeting for growth but a lot of it is going to depend on how the economy and the country opens up post the second wave of COVID.
"Hopefully there would be no third wave of COVID. If that doesn’t happen and if the economy opens up then the industry and our company are poised for growth,” Mahadevan analysed.
For the entire management interview, watch the video