Ashok Leyland expects 10% YoY growth in truck segment

New Delhi, March 22 (IANS) Commercial vehicle manufacturer Ashok Leyland on Wednesday said its truck segment is expected to grow at 10 per cent year-on-year (YoY) in the Indian logistics sector.

The Hinduja Group flagship company said it aims to strengthen its position further in the logistics sector, which is expected to grow at a compounded annual growth rate of 16 per cent.

"The truck segment in the logistics sector, where we have around 45 per cent market share, is expected to grow at 10 per cent y-o-y. We want to further strengthen our position through our vehicles, offering the latest in technology, which help our customers earn better margins and superior efficiencies," Anuj Kathuria, President - Global Trucks, Ashok Leyland, said in a statement.

The Chennai-based commercial vehicle maker showcased its range of fully built logistics vehicles here today.

"While the inflow on new investments will create new opportunities in this (logistics) sector, the 'Make in India' campaign will see these investments connect India to global markets," he said.

Kathuria noted that the scope of improvement of efficiencies is huge as the country spends around 14 per cent of its GDP on logistics and transportation compared to eight per cent in other developing countries.

Kathuria asserted that with a renewed push from the government for infrastructure and integrated, multi-modal logistics and transport policy, a lot of improvements are expected in the logistics sector.

"Estimates of this sector are projected to be worth $370 billion by the year 2020. Trucks are the most popular mode, 65 per cent of freight in India, translating into a big opportunity for manufacturers like us to contribute to the positive change in making our country's logistics sector globally competitive," Kathuria said.

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