Ashok Leyland may skip sub 1-tonne segment

Ashok Leyland is not keen to participate in the sub-one tonne CV segment claim industry sources. They draw attention to Nitin Seth, President – LCV and Defence, Ashok Leyland, having mentioned that the respective segment is shrinking, and they would therefore not be keen to look at it. With Ashok Leyland said to be keen to double its LCV market share from 15 per cent to 30 per cent over the next three to four years, a strategy to concentrate on a segment between two and 7.5-tonne would help. Apart from operators looking at moving up in anticipation of better earning potential by carrying higher load, and quickly, the reason for the sub-one tonne segment to shrink is said to be the tightening emission standards. In FY2012-13, the total volumes in the sub one-tonne segment were 2.47 lakh units with Tata Ace accounting for about 83 per cent of the market share. Total sales of pick-up segment (above one-tonne payload) were about 1.93 lakh units. In FY2016-17, sales of sub one-tonne vehicles were about 1.17 lakh units. Pick-up truck volumes were .08 lakh units. If this indicates a shift to higher tonnage CVs, it is also about the growing shortage of drivers, said a source.