The Hindu Business Line : Ashok Leyland aims at double-digit growth in sales

This is because of large-scale pre-purchases taking place before the new emission norms come into force, according to Mr R Seshasayee, Managing Director, Ashok Leyland.

He was speaking at the sidelines of the World Economic Forum’s India Economic Summit on Sunday.

The Bharat Stage IV emission norms come into force from April 1, 2010. After that date all new vehicles manufacturers are expected to raise prices because of the higher cost of development of new and more efficient diesel engines.

Mr Seshasayee said that the M and HCV (medium and heavy commercial vehicles) sector has now recovered after the slump of the first few quarters and is now showing robust growth.

“We expect to grow in line with the industry. This should continue till the new emission norms come in force. There is a lot of pre-buying taking place,” he said.

He further added that Ashok Leyland is short of production this month due to supply chain issues.

On the joint venture project with Nissan, he said that it is running on target. “We’ve redrawn the parameters to use the facilities of both the partners. In the first phase, we expect a rollout by early 2011 from our Hosur plant. As volumes pick up, we will later look at a greenfield site for the second phase of the project,” he said.

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