Ashok Leyland July sales, unsold stock goes up

August 5th, 2008 - 4:49 pm ICT by IANS  

Chennai, Aug 5 (IANS) India’s second largest commercial vehicle manufacturer Ashok Leyland Ltd, which sold more than 6,000 vehicles in July this year, is planning to enter construction equipment manufacturing. The company is contemplating rolling out backhoe loaders, excavators apart from dumpers.

Ashok Leyland sold 6,202 vehicles (domestic 5,502 units, exports 700 units) during July this year, as against 5,574 units (domestic 5,034 units, exports 540 units) during the corresponding month last year.

However, compared to June 2008, when it sold 7,144 units (domestic 6,435 units, exports 709 units), Ashok Leyland’s July sales are down by 942 units depicting a slowdown in sales.

The total unsold stock at the end of July stood at 959 units as against 737 units in July last year. In June, the unsold stock was 556 units.

In the first four months of the current fiscal (April-July), Ashok Leyland has rolled out 29,792 units and sold 24,627 units (domestic 22,647 units, exports 1,980 units), while the unsold stood at 5,165 units.

During the first quarter of the current fiscal (April-June 2008), Ashok Leyland registered 16.2 percent increase in turnover to Rs.18.83 billion as against Rs.16.21 billion during the corresponding period of the previous year.

The company sold 18,425 units (domestic 17,145 units, exports 1,280 units) during the first quarter as against 18,163 units (domestic 16,739 units, exports 1,424 units) sold during the first three months of FY07.

“Although vehicles sales remained relatively flat, turnover was buoyed by a substantial increase in our engine and spare parts businesses. Turnover has also benefited from better domestic realization and pricing actions,” R. Seshasayee, managing director, said while announcing the first quarter results.

He said: “The spiralling interest rates and inadequate finance availability for new vehicle purchases have affected the sentiment in the vehicles market. However, nothing has changed in our optimism for the medium and long term.”

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