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.
 

Comments (0)

ADD COMMENT

Link Copied!

Chennai-based conglomerate Murugappa Group has announced the passing of Arunachalam Vellayan (1953–2025) following an illness.

Vellayan was the Chairman Emeritus of Coromandel International and the Former Chairman of the Murugappa Group. He is survived by his wife, Lalitha Vellayan, his sons, Arun Vellayan and Narayanan Vellayan, and his grandchildren.

The Former Chairman dedicated several decades to the Group, providing strategic direction across its businesses. His approach to value creation helped strengthen and expand the Group, contributing to its reputation as a respected conglomerate.

He served on the Boards of various Murugappa Group companies, including as Chairman of Coromandel International and EID Parry.

Outside the Group, he served on the Boards of entities such as Kanoria Chemicals & Industries, EXIM Bank and Indian Overseas Bank.

Comments (0)

ADD COMMENT

Link Copied!

Tier 1 automotive supplier Tata AutoComp Systems has won the Deming Prize for the third time in two years. The award recognises organisations for excellence in Total Quality Management (TQM) and continuous improvement.

It was on 5th October, Motoring Trends first broke the news that Tata AutoComp Hendrickson Suspensions, a business unit of Tata AutoComp Systems, had become the latest recipient of the prize, becoming the world’s first commercial vehicle suspension system manufacturer to receive the honour. The company's other two business units that won the Deming Prize were the Composites Division and Tata Ficosa, both awarded in 2024.

Arvind Goel, Vice-Chairman – Tata AutoComp Systems, said, “Winning back-to-back Deming Prizes in 2024 and 2025, three prizes in two years, is a proud milestone that emphasises the paramount importance of Total Quality Management in our organisation. As we expand into new segments, geographies and technologies, quality management remains our foremost priority. This achievement is a testament to our collective dedication. TQM is a people’s movement and every employee has played a pivotal role in this journey. Building on this momentum, we have a well-defined and ambitious plan for other BUs to adopt the TQM way and pursue the Deming Prize.”

Manoj Kolhatkar, MD & CEO, Tata AutoComp Systems, added, “Total Quality Management is a people’s movement, and the Deming Prize reflects how we are enabling a quality mindset, driving customer-centric transformation, and promoting sustainable growth through quality leadership.”

Comments (0)

ADD COMMENT

Link Copied!

Blue Ocean Corporation, a globally recognised leader in supply chain consulting and training, is strengthening its engagement with India's evolving economic landscape through a significant strategic appointment. The company has welcomed Pushpinder S Puniha, a distinguished figure who chairs the Consultative Group on Tax Policy at NITI Aayog, to its Advisory Board. This move is designed to create a powerful synergy between high-level policy expertise and practical industry application.

Puniha’s arrival coincides with a period of profound structural change within the Indian economy, where modernising supply chains, implementing tax reforms and executing policy-driven initiatives are central to national progress. His deep expertise in fiscal governance and public policy will equip Blue Ocean with critical insights, enabling the firm to precisely align its consulting, training and capacity-building programmes with the country's development goals. This collaboration not only accelerates Blue Ocean’s expansion within India but also solidifies its commitment to cultivating a robust supply chain ecosystem and a highly skilled workforce. The appointment acts as a strategic bridge, connecting the government’s economic vision with global professional standards.

By integrating thought leadership from India's premier policy institution, Blue Ocean ensures its services directly support national campaigns such as Make in India and Skill India while remaining forward-looking and relevant. Puniha’s recent participation at the company's International Procurement and Supply Chain Conference in New Delhi underscores this shared mission to merge international best practices with India's ambitions for sustainable growth. As an Indian-owned multinational, Blue Ocean is actively broadening its domestic footprint with new offices in Tier 1 and 2 cities. Puniha’s advisory role is anticipated to be a catalyst in this expansion, reinforcing the corporation's position as a key partner in India's journey towards becoming a USD 5 trillion economy and a global hub for talent.

Sourav Ganguly, Member of Board at Blue Ocean Corporation, said, "Having worked with Puniha earlier at the BCCI, I know the value he brings through his expertise and professionalism. It is a privilege to work with him again at Blue Ocean, where his presence on the Advisory Board will help us drive our future growth and impact."

Puniha said, "At Blue Ocean, I see a strong commitment to aligning global expertise with India’s economic priorities. Together, we will drive initiatives that build skilled talent and strengthen India’s position as a global supply chain hub."

Dr Sathya Menon, Group CEO of Blue Ocean Corporation, said, "India is positioning itself as the world’s supply chain hub. Puniha’s expertise will strengthen our India strategy and make our initiatives more impactful."

Comments (0)

ADD COMMENT

Link Copied!

Shailesh Chandra, the Managing Director of Tata Motors Passenger Vehicles & Tata Passenger Electric Mobility, who is also currently the President of the Society of Indian Automobile Manufacturers (SIAM), has been elected the new President of the Organisation Internationale des Constructeurs d’Automobiles (OICA), effective 1 November 2025.

This makes Chandra the first Indian to lead the global federation, succeeding John Bozzella of the USA.

Founded in 1919, the OICA represents 36 national associations of motor vehicle manufacturers worldwide, focusing on issues of mobility, environment, safety, and economy and promotes harmonised technical regulations through the United Nations.

“It is an honour to become the first OICA President from India, which is highlighting the organisation’s global representation. As the global automotive industry transitions towards sustainable mobility and pursuits ‘Net Zero’, in alignment with the visions of Governments worldwide, the role of OICA becomes increasingly critical – to acknowledge the diversity of every region, as we collectively strive to make our vehicles more aspirational, safer and environmentally friendly,” said Chandra.

Chandra's background includes over two decades of automotive experience with Tata Motors, where he is credited with turning around the passenger vehicle business and spearheading the electric vehicle segment in India. He holds a Mechanical Engineering degree from IIT Varanasi.

On the other hand, Hildegard Muller, President of Germany's Verband der Automobilindustrie (VDA), was elected OICA's Vice President. Her appointment recognises her leadership within Europe's automotive sector and her experience in industry and government, which includes serving as a former Minister of State to the German Chancellor. Muller has led the VDA since 2020, navigating the German automotive industry through challenges related to electrification and global trade.

Comments (0)

ADD COMMENT

Link Copied!