Feb 19, 2013, 09.37 PM IST | Source: CNBC-TV18

Budget 2013: Ashok Leyland urges more govt action to rescue CV segment

Ater a disastrous 2012, things are not looking up for the commercial vehicle (CV) industry. Vinod Dasari, MD, Ashok Leyland told CNBC-TV18 that the industry will struggle for the next six months.

A market downturn for sometime was expected but we didn’t expect it to be this far down

Vinod Dasari

MD

Ashok Leyland

Ater a disastrous 2012, things are not looking up for the commercial vehicle (CV) industry. Vinod Dasari, MD, Ashok Leyland told CNBC-TV18 that the industry will struggle for the next six months. However, he said Ashok Leyland is gaining market share and has called for increased government action to rescue the sector.

Dasari says, "A market downturn for sometime was expected but we didn’t expect it to be this far down. We are happy that while the industry is down 25 percent we are only down about 10 percent, so we have gained the market share. Suddenly, people have been asking me what should the government do to trigger the market."

Also Read: Ashok Leyland, Rain Comm, KEC Inter top sells: Tata MF

Further, Dasari hopes that in the second round of Jawaharlal Nehru National Urban Renewal Mission (JnNURM) more accelerated funding for road projects takes place, some more mining licenses would be given and those things would accelerate the economy.

"We should give more incentives to organisations in India who want to export by taking away the Duty Entitlement Passbook Scheme (DEPB) which was hurting us. Inside the country, an excise duty cut or a rate cut would certainly be helpful. We won't see an immediate result, but atleast 2-3 months later the CV industry would get a benefit," adds Dasari.

Ashok Leyland stock price

On April 17, 2014, Ashok Leyland closed at Rs 22.80, up Rs 0.05, or 0.22 percent. The 52-week high of the share was Rs 25.20 and the 52-week low was Rs 11.82.


The latest book value of the company is Rs 16.74 per share. At current value, the price-to-book value of the company was 1.36.

READ MORE ON  Ashok Leyland, CV, vehicle, JnNURM, DEPB
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