- 20 Feb 2025
- ICICIdirect Research
ASHOK LEYLAND HAS SECURED AN ORDER TO SUPPLY 320 STATE-OF-THE-ART BS VI DIESEL FUEL
ASHOKLEY - 240 Change: 0.81 (0.34 %)News: Ashok Leyland has secured an order to supply 320 state-of-the-art BS VI diesel fuel type 12-meter ultra-low entry rear engine fully built buses for city operations for Tamil Nadu State Transportation corporation, featuring advanced iGen 6 technology and a robust H-Series engine rated at 184 kW (246 hp) with front and rear air suspension. The total consideration for this order is ~ ₹297.85 crores, and the execution is scheduled between June 2025 and August 2025.
View: Earlier in December’24, the company secured an order to supply 1,475 BSVI diesel fuel type passenger bus chassis to the same entity with an order value of ~ ₹ 345.58 crores. The current order is more advanced in terms of features for the product and has a higher per unit order value. With heavy capex allocated for infrastructure development in FY25E, CV demand is poised to pick up in coming months. Ageing fleet, overall economic growth and stable diesel prices is also expected to support fleet expansion and replacement demand. Buses segment is the growth driver for the domestic CV industry. YTD buses volumes at Ashok Leyland are up 21% YoY and with increase in orderbook, Ashok Leyland will further drive the sales of buses domestically.
Impact: Positive