a. Industry scenario
b. Position of our company
c. Strengths & weaknesses
d. Future plans
f. Sales breakdown
g. Interesting anecdotes about the company
About Askok Leyland
Ashok Leyland is a commercial vehicle manufacturing company founded in 1948 based in Chennai. Commercial vehicles include cars, trucks and buses. The company also handles emergency and military vehicles. Operating six plants, Ashok Leyland also makes spare parts and engines for industrial and marine applications. Every year, the firm sells around 60,000 vehicles and 7,000 engines. It has a market share of 28% making it the second largest commercial vehicle company in India in the medium and heavy commercial vehicle segment. With passenger transportation options ranging from 19 seaters to 80 seaters, Ashok Leyland is a market leader in the bus segment. On any given day, the company carries 60 million passengers a day, more people than the entire Indian rail network. In the trucks segment Ashok Leyland primarily concentrates on the 16 ton to 25 ton range of trucks. However Ashok Leyland has presence in the entire truck range starting from 7.5 tons to 49 tons. * In 1948, the Company was founded under the name “Askok motors” producing Austin cars. * The company became Ashok Leyland in 1955 together with British Leyland and commenced manufacture of commercial vehicles * Won the ISO 9002 certification in India in 1993. The higher ISO 9001 came the following year. * Released buses with quiet engines and low pollutant emissions in 1997 * Developed the first hybrid vehicle in 2002
* Started a joint venture Avia Ashok Leyland Motors s.r.o. seeking penetration into competitive European markets in 2008
Industry Outlook for the sectors of operation
The Commercial Vehicles Segment:
Among the Auto segments, the CV industry (and in particular themedium and heavy auto segment) was the worst hit by the sudden recession witnessed during 2008-09 characterised by plantshutdowns and production cuts. However, various quick initiatives by the Government, in particular, the reduction in excise duty to 8 percent on both buses and trucks, 50 percent accelerated depreciation on new trucks and for buses purchased under the JNNURM scheme, cut in fuel prices, etc. boosted CV sales froma low of 20,282 vehicles in December'08 to 33,072 vehicles in May 2009.
Ashok Leyland’s current status:
Ashok Leyland is the second technology leader in the commercial vehicles sector of India behind Tata Motors. The company has also maintained its profitable track record for 60 years. The annual turnover of the company was USD 1.4 billion in 2008-09. Selling 54,431 medium and heavy vehicles in 2008-09, Ashok Leyland is India's largest exporter of medium and heavy duty trucks. It is also one of the largest private sector employers in India - with about 12,000 employees working in 6 factories and offices spread over the length and breadth of India.
The company has increased its rated capacity to 105,000 vehicles per annum. Ashok Leyland has also entered into some significant partnerships, seizing growth opportunities offered by diversification and globalization – with Continental Corporation for automotive infotronics; with Alteams in Finland for high pressure die casting and recently, with John Deere for construction equipment. The Hinduja Group also bought out IVECO's indirect stake in Ashok Leyland in 2007. The promoter shareholding now stands at 51%.
| 2008-2009| 2009-2010| Change|
M & HCV| 183,495| 245,058| 34%|
LCV| 200,699| 286,337| 43%|
Total| 384, 194| 531,395| 38 %|
Exhibit 1: Total Industry volumes for the preceding years.
Performance in 2009-2010:
Against the backdrop of increase in demand for commercial vehicles, the Company registered sales of 57,139, 21 percent more than the previous year....