Better days ahead for Ashok Leyland with new LCV launch; Know What Bada Dost would mean for company

Hinduja Group company Ashok Leyland has seen some great action on the stock markets today. What is the reason behinds this heightened interest of the markets on this company's stock? What are the fundamental triggers? Zee Business’ Kushal Gupta has a detailed research report on this! 

Gupta said that Ashok Leyland has launched a new LCV (Light Commercial Vehicle). This LCV can be a game changing move for this company, he added. It is expected that the company will be launching more products from this platform. This new Product is a light truck called ‘Bada Dost’. 

Watch Zee Business Tweet Video Below:

अशोक लेलैंड के आएंगे 'अच्छे दिन'! नए लॉन्चेस से कितना मिलेगा फायदा?#AshokLeyland @KushalGupta44 pic.twitter.com/haSwAvidVR

— Zee Business (@ZeeBusiness) September 16, 2020

The LCV accounts for 70 per cent of its commercial vehicles (CV) sales in India. The contribution of LCVs in its product portfolio is only growing constantly. It has almost 570 outlets across the country and is aiming to put this vehicle across all its outlets within the next three months, Gupta said. 

This new product is launched in direct competition with Mahindra Bolero. Mahindra has a 65 per cent share in this segment in the country, he further said. The company has also recently launched its left hand driving variant, which in itself is a big innovation  

Ashok Leyland also has its eye on exports, he said adding that the company is likely to start exporting this new LCV in Africa, SAARC nations, Gulf nations and ASEAN from January 2021.  

The company is also planning to launch an electronic variant of Bada Dost LCV. 

See Zee Business Live TV Streaming Below:

Ashok Leyland sold 1560, 2783 and 3602 LCVs in June, July and August months respectively.