Heavy duty trucks to be a third of ALL's biz by 2020

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Heavy duty trucks to be a third of ALL's biz by 2020

Ashok Leyland is India's second largest bus and truck maker. But by 2020, big trucks and buses are going to be only a third of its business. So says its Managing Director, R Seshasayee.

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Ashok Leyland is India's second largest bus and truck maker. But by 2020, big trucks and buses are going to be only a third of its business. So says its Managing Director, R Seshasayee.

Here is a verbatim transcript of Menaka Doshi and Sumantra Barooah's comments on CNBC-TV18. Also watch the accompanying video.

Heavy trucks and buses may have a smaller role to play in Ashok Leyland's business ten years down the line. Its joint venture (JV) agreement with John Deere for construction equipment, its recent decision to rope in former Satyam Vice-President, Subu Subramanian as CEO of its research and engineering business, are some steps to expand its business and reduce its dependence on its commercial vehicles business.

R Seshasayee, Managing Director, Ashok Leyland said, "If I take the medium heavy duty, the light commercial or the agencies, whether they are part of Ashok Leyland or part of joint ventures, in a manner of decade, the medium heavy duty vehicles, which are now about 70% of our total business, would have shrunk to about one third of our total business."

And the rest, Seshasayee says, will come from other growing areas such as LCVs, defence, engines, technology and construction. The company has also made new investments to fuel its competitive edge as well as grow its capabilities in technology.

Vinod Dasari, Chief Operating Officer, Ashok Leyland said, "I think in the next 2 years, it will almost be a water-shed event in our company - we are getting a completely new engine, we are getting new gear boxes - we are getting our entirely new platform of vehicles which are modular in nature. At the same time we are investing heavily. I think we must have invested in the last 3 to 5 years if I include the next couple years - more money that we would have invested in the first 60."

And these investments will bear fruits over the next decade, by when Ashok Leyland would like to be seen as a technology provider, construction equipment maker and a heavy truck and bus maker.