After Ashok Leyland ended its joint venture with Nissan, it now plans to focus on the light commercial vehicles (LCV) space.
As part of Ashok Leyland's hedging strategy, its board has approved an investment of Rs 400 crore in its LCV business.
The company believes the LCV business being more stable than the heavy commercial vehicles (HCV) segment will shield the company from cyclical downturns. Accordingly, it plans to double the share of LCV in the total commercial vehicles business to around 50 percent in the next 3-4 years.
The company will be launching two new LCV platforms in the next 18-24 months. The LCV business is expected to break-even after volumes rise to more than 55,000 per year.
For this, the company has made plans to start exports to markets like Africs, Gulf and West Asia starting July onwards.
Ashok Leyland had in November last year, acquired Nissan's stake in three joint ventures between the two companies, namely, Ashok Leyland Nissan-Vehicles, Nissan-Ashok Leyland Powertrain and Nissan-Ashok Leyland Technologies.
After its break up with Nissan, Ashok Leyland had inherited loans of Rs 600 crore.
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