Ashok Leyland commences production at new bus facility in Andra Pradesh
Ashok Leyland has started production of buses at its new plant in Andhra Pradesh. The development comes at a time when the company's bus volume continues to be under pressure.
In a disclosure to BSE, Ashok Leyland said that commercial production of the buses at the plant set up at Vijayawada, Andhra Pradesh commenced on February 19, 2021.
Ashok Lyeland reported a 69 per cent drop in bus sales during the month of January 2021 to 820 units as compared to 2,682 units in the year ago period. During April 2020-January 2021, company's bus sales dropped by around 82 per cent to 3,662 units as compared to 19,950 units in the year ago period.
The bus segment continues to be under pressure since STUs and schools segments have not revived. During the third quarter, TIV (total industry volume) for buses dropped by around 84 per cent to 1,700 units from 11,000 units a year ago.
These are expected to recover with the opening up of restrictions.
In 2018, ALL held ground breaking for the new bus plant situated in Model Industrial Park, Mallavalli Village in Krishna District, 40 kms from Vijayawada. During the ground breaking ceremony, the company said that the plant will attract an investment of around Rs 340 crore
The plant, spread over 75 acres, will include latest technology to deliver the high quality standards of the Ashok Leyland brand. The plant once fully completed will be able to produce 4,800 buses per annum, and will also have a learning center and an advanced service training center, the company had said.
The plant will have the capability to make the entire range of buses of Ashok Leyland brand. The facility will also include an electric vehicle development centre comprising a futuristic conveyor line, pilot assembly line and prototype development.
Officials earlier said that this facility will help the company stay ahead of the curve by ensuring its readiness towards implementation of the bus body code and to meet the rising demand for ready-to-use, fully-built trucks as well. The company will also produce electric vehicles at this plant. The new plant is also strategically located to meet the demands of central, eastern and south Indian markets.