Recording a 353 percent increase in the revenue for the first quarter of FY2021-22 at INR 29,510 million in comparison to the revenue generation of INR 6,510 million in the corresponding quarter of FY2020-21, Ashok Leyland is confident of a strong demand emerging post the second Covid-19 wave. Clocking export volumes of 1,437 units in the first quarter of FY2021-22, up 254 percent when compared to the export of 405 units in the first quarter of FY2020-21, the commercial vehicle manufacturer is concentrating on vaccination and the adherence of safety protocols to try and ensure that all its stakeholders stay protected from a potential third wave. Experiencing a 1,041 percent growth in domestic M&HCV volume in the first quarter of FY2021-22, which is almost twice than that of the industry growth volume at 562 percent during the same period, the company has reported a net loss of INR 28,20 million in the first quarter of FY2021-22 as against a net loss of INR 38.90 million in the corresponding quarter of FY2020-21. Selling 8,690 LCVs in the domestic market in the first quarter of FY2021-22, up 224 percent as compared to the sale of 2,686 LCVs in the corresponding quarter last fiscal, Ashok Leyland is closely observing the way the freight rates are shaping up. It is confident that freight rates will improve with higher availability of commercial vehicles once the Covid-19 subsidies and uncertainty fades. “We are hoping for the volumes to grow higher as the market gets better,” mentioned Mahadevan. “July (2021) has been a growth month,” he added. Stressing that they have had eight months of degrowth, Mahadevan said, “Economic growth will induce growth in CVs.”

CV trends
Working on a strategy for a robust domestic and exports growth, the commercial vehicle major is appointing dealers in Africa. Looking at gaining good traction in South East Asia, Ashok Leyland will launch new products in the LCV segment even though not in the immediate quarter. Buoyed by the international markets opening up and experiencing export thrust, the company is said to be testing an electric version of its LCV platform on which the Bada Dost is based in the UK. This vehicle is expected to be launched at the end of this fiscal or in the first half of the next fiscal. Of the opinion that electric vehicles are catching up, especially at the local point of use, on the encouragement of the governments, Mahadevan averred, “It is more to do with buses, but trucks will catch up.” Seeing a trend of petrol commercial vehicles in the low-tonnage segment of sub-1 tonne to 1.5 tonne, Mahadevan drew attention to the push on CNG. “We are ready in the LCV and ICV (segment),” he added. Of the firm belief that diesel vehicles will continue and the IC engine will coexist and not die overnight, Mahadevan said, “We are ready to cater to higher demand.” 
 

Watching closely how freight operators are able to pass on the fuel price hike to their end customers, Ashok Leyland is hoping that bus commute will pick up. A 40,000 units per annum market, according to Mahadevan, buses have been severely affected due to the Covid-19-led disruption. Delivering 40 electric buses to the city of Chandigarh recently (from where it has bagged an order to build and maintain e-buses with quick charging technology), Ashok Leyland is expecting pent-up demand to show up once normalcy returns. Also expecting demand to show up because of the need to ferry people without sacrificing social distancing norms, Mahadevan drew attention to their work towards further strengthening their position in the bus and LCV market segments. With the talk of schools reopening in regions where the Covid-19 infections are down, and the relaxation in Covid-19 norms in some region allowing more employees to return to their offices, bus demand is expected to improve post witnessing a sudden downfall mid-last year. Through the establishment of Switch Mobility, Ashok Leyland is keen to experience a speedier ride in the ‘cleaner and greener’ bus space. 
 

Managing costs and productivity 
Eyeing international markets like the US, Europe and Japan, the company, through the Switch Mobility subsidiary, has worked with a few consultants to make sure that its data points and numbers are on par with the current situation. Under Switch Mobility, it is developing new products to present an advantage of unique position in terms of value and premium positioning. For its Switch Mobility subsidiary that includes the erstwhile Optare of UK, Ashok Leyland has managed to get USD 18 million worth of investment from Dana Incorporated (Dana), a US-based manufacturer of drivetrain and e-propulsion systems. To do de-bottlenecking once enough demand is evident, Ashok Leyland, investing sufficiently in terms of capex, is confident of seeing early growth sprouts in LCVs. Therefore, if it were to do immediate capex investment, it would be in LCVs. Discussing with scrappage centres post the announcement of the scrappage policy, Ashok Leyland, the second-largest CV maker in the country, is witnessing good traction from its other business verticals like defence, power solutions and aftermarket. They are contributing to its top line. 
 

With the pace of vaccination picking up and positively setting in, Ashok Leyland is expecting a demand spike in commercial vehicles after the fear of a third Covid-19 wave is over. This, according to Mahadevan, could happen in the second half of this fiscal. Focusing on costs, productivity and middle level management, the commercial vehicle major is also concentrating on reducing its carbon footprint. Apart from announcing strategic steps to move towards net zero carbon mobility through Switch Mobility, Ashok Leyland, said Mahadevan, has formed an ESG committee of the Board. The committee will guide and propel the commercial vehicle manufacturer to achieve its sustainability agenda.
 

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Hero MotoCorp, the world’s largest two-wheeler manufacturer, has announced a cumulative investment of over INR 32 billion in Andhra Pradesh.

The announcement was made as the company held a foundation stone ceremony for its second Global Parts Centre (GPC) in Tirupati, which involves an investment of Rs 7.5 billion.

N Chandrababu Naidu, Chief Minister of Andhra Pradesh, said, “Hero MotoCorp has been a valued partner in Andhra Pradesh's growth journey, and particularly in the transformation of Rayalaseema. Its decision to establish the Global Parts Centre in Tirupati is a strong endorsement of our state's progressive policies, world-class infrastructure, investor-friendly ecosystem, and our commitment to the Speed of Doing Business. Over the years, Hero MotoCorp's presence has generated thousands of jobs, strengthened local supply chains, enhanced skills, and accelerated economic growth across Rayalaseema and Andhra Pradesh. We are delighted to see this partnership grow even stronger. This landmark investment will create new opportunities for our youth, strengthen the industrial economy of Rayalaseema, and further establish Tirupati as one of India's leading manufacturing, mobility and logistics hubs. As Rayalaseema emerges as a major centre for industry, innovation and advanced manufacturing, partnerships like these will play a defining role in shaping its future. We deeply appreciate Hero MotoCorp's continued trust in Andhra Pradesh and look forward to working together to build a future-ready, globally competitive industrial ecosystem that drives innovation, creates quality employment, and delivers sustainable prosperity for all.”

Dr Pawan Munjal, Executive Chairman, Hero MotoCorp, said, "At Hero MotoCorp, we have always believed that business growth and nation-building go hand in hand. The foundation stone of our second Global Parts Centre in Tirupati marks an important milestone in our journey and reflects our deep confidence in India’s future and Andhra Pradesh’s vision for growth. By transforming Tirupati into a future-ready manufacturing and electric mobility hub, this investment will enhance our global supply chain, support our expansion across markets, and reaffirm our commitment to 'Made in India, for India and the World.' It is deeply meaningful to mark this milestone on the birth anniversary of my father, our Founder and Chairman Emeritus, Dr. Brijmohan Lall Munjal. He believed in building enduring institutions and always preparing for the future. It is deeply meaningful to mark this milestone on the 103rd birth anniversary of my beloved father, our Founder and Chairman Emeritus, Dr. Brijmohan Lall Munjal. A true visionary, he championed the belief that great institutions are not just built to survive the present but are actively sculpted to lead the future. This Centre is a humble tribute to his vision, values and enduring belief in India’s potential. I am certain that this new Centre will proudly carry forward his legacy of enterprise, purpose and service to the nation.”

The Global Parts Centre is expected to support domestic and international operations. The company plans to scale the annual production capacity of the Tirupati plant to between 1.2 and 1.5 million units. The expansion is projected to create 4,000 jobs.

Furthermore, Hero MotoCorp also introduced two community programmes the ‘Dr. Brijmohan Lall Munjal Heroes of Tomorrow Scholarship’ to provide tuition coverage for students pursuing engineering degrees at state IIITs. And the company would deploy VIDA electric scooters and providing safety training for women police personnel in the Tirupati district.

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Automotive component supplier Rane (Madras) has signed a business transfer agreement to acquire the friction business of Hindustan Composites on a slump sale basis for an enterprise value of INR 3.7 billion.

The acquired business includes manufacturing plants in Paithan and Bhandara, Maharashtra. The facilities manufacture brake pads, brake linings, clutch facings and brake blocks.

The agreement also includes the transfer of the ‘COMPO’ brand name, which is intended to increase market access across distribution and aftermarket channels. Rane’s (Madras) existing friction business generates revenue exceeding INR 7 billion and the merger of these operations will scale the friction materials business to more than INR 10 billion.

Harish Lakshman, Chairman, Rane Group, said that the integration of the complementary operations is intended to build a scaled friction solutions platform to service the domestic transportation sector while creating manufacturing and supply efficiencies. The company expects the transaction to reach financial and operational closure by the end of the second quarter of the current fiscal year.

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Mumbai-headquartered engineering major Greaves Cotton has incorporated a wholly-owned subsidiary, Greaves International Trading FZE (GITFZE), in Dubai, United Arab Emirates. The subsidiary will function as a hub for trading and distribution, aiming to increase the company’s presence in the Middle East and Africa.

The subsidiary will manage business development, customer engagement, technical support, channel partnerships, aftermarket services and supply chain coordination. Its portfolio will include diesel engines, gensets and powertrain solutions.

Greaves International Trading FZE  will initially target GCC markets, including the UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain, with subsequent expansion planned for the Levant and Africa.

Parag Satpute, MD & Group CEO, Greaves Cotton, said, “International Business is a key growth driver for Greaves and a core pillar of our GREAVES.NEXT strategy. In line with our strategic roadmap, its contribution increased from 9 percent to 13 percent in FY2026. The establishment of Greaves International Trading FZE marks a significant step in strengthening our presence across the Middle East and Africa. It enhances our ability to respond with agility to market needs, deepen customer engagement and deliver reliable, future-ready solutions. This is a focused move towards expanding our global footprint and driving sustained, long-term growth.”

The establishment of GITFZE is part of the company's strategy to scale its footprint and export capabilities.

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Stellantis, one of the leading automotive groups, has announced appointments within its Enlarged Europe organisation, effective 1 July 2026.

The company has announced that Santo Ficili has been appointed the CEO of the Maserati brand, while continuing his role as CEO of Alfa Romeo. In addition, Luca Napolitano has been appointed Head of Stellantis &You Sales and Services.

These appointments follow the departure of Jean-Philippe Imparato, who is leaving the company after 36 years.

Emanuele Cappellano, COO, Enlarged Europe & European Brands and Head of Stellantis Pro One, said, “I would like to extend my sincere thanks to Jean-Philippe for his unparalleled contribution to our Company, in which he spent his entire professional life. Jean-Philippe has been a true example of how to combine passion with business, inspiring people with his daily commitment and deep knowledge of the automotive industry. I congratulate on their appointments Santo and Luca, who are already fully operational within Maserati and Stellantis &You organisations and will ensure continuity in these key areas. Their experience and leadership will be crucial in this new stage of growth.”

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