Ashok Leyland is eying to generate fat profits this year.
The company has set a target of selling 1.1 lakh units of their heavy and medium commercial vehicles. Their main focus is to secure a strong position in the light commercial vehicle market and dispatch around 36,000 units of Dost.
With an approximate commission of about Rs. 15,000 to Rs. 18,000 per unit of Dost, Ashok Leyland would be able to generate Rs. 54 to Rs 65 crore if this target is met.
The Dost is the outcome of the Ashok Leyland-Nissan JV, which is being marketed and sold by Ashok Leyland through its dealer network. In the future we can expect variants based on the Dost platform to compete with Tata and Mahindra products. A passenger carrier along the lines of the Venture is being developed and shall soon see the light of day.
Apart from the Dost, the Ashok Leyland-Nissan JV would come out with the Stile, which is a commercial application of the Nissan Evalia (NV200 in international markets). The Stile could be price positioned to attract the taxicab market thus keeping the "Taxi Car” image from sticking on to the Evalia.
Market analysts predict there will be a rise in demand for Commercial Vehicles at a fast pace. With major brands trying to get into the market Ashok Leyland isn't keeping mum. The company recently slashed prices on their vehicles by 1% after corrections were made to the excise duties and appointed a brand ambassador.
[Source: thehindubusinessline via moneycontrol]