BANGALORE: In a positive development for the ailing Ashok Leyland, the company has received orders for 2,200 buses from the Sri Lanka Transport Board.
The development coming at a time when commercial vehicles sector is reeling under two years of declining sales. The CV segment saw a de-growth of 20.03 per cent in FY14 with medium and heavy CVs declining 25.33 per cent and LCV dropping 17.62 per cent.
“Ashok Leyland will supply 2,200 buses within the next six months. With this latest order, the company reinforces its position as the market leader in Sri Lanka and as an important stakeholder in Sri Lankan transport,” it was reported.
The buses made by Ashok Leyland ply as local transport buses in the Island nation’s capital Colombo among other places.
“This is a huge order especially at a time when the domestic market is just about to bounce back. This order reaffirms our strategy to substantially enhance our sales outside India,” Vinod K Dasari, Managing Director of the company was quoted as saying.
The CV sector is keenly awaiting support from the government to boost sagging sales. Industry captains have maintained that if stalled infrastructure projects are cleared, it will automatically create demand for the CVs; a segment which is directly related to economic activity in the country.