Business IdeasAshok Leyland to hike prices of CVs soon
Hinduja Group-promoted Ashok Leyland today said it will hike prices of its commercial vehicles shortly due to rising input costs.
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"Commodity prices are going up and we are already considering to hike the prices of our products. It will happen shortly, before March," Ashok Leyland Managing Director R Seshayee told reporters here at the 10th Auto Expo.
He, however, said there has been a surge in demand of commercial vehicles in the last two quarters and the company expects to close this fiscal at a total sales of about 62,000-63,000 units.
When asked about the sales prospects for next fiscal, he said, "it (growth) should be in double digits."
Seshasayee also said the government must not withdraw the stimulus package provided by it in the wake of the economic downturn.
He said excise duty reduction, especially in the commercial vehicle segment should not be treated as stimulus.
The government has cut excise duty on commercial vehicles to eight per cent in phases to spur growth.
"Commercial vehicles (segment) deserve lower excise duty, therefore that must continue," he said.
Ashok Leyland also said it would execute orders received from 21 state transport bodies for supply of buses by March 31 this year under the Jawaharlal Nehru National Urban Renewable Mission. Of the 11,000 orders placed by different state bodies, 51 per cent were bagged by the company.