Ashok Leyland bags order from Tamil Nadu State Transport Undertakings for 1,750 buses.
Date: November 29, 2019
Commercial vehicle manufacturer Ashok Leyland recently announced that it has bagged an order for 1,750 buses from Tamil Nadu State Transport Undertaking (TN STU). This order comes closely on the back of orders received from various state transport undertakings recently, the Hinduja Group company said in a press statement.
“We are very happy to receive the confirmation of this order from TN STU. Our ability to bring value, combined with our superior technology and innovation will help us maintain our leadership position in buses in India,” Anuj Kathuria, COO, Ashok Leyland was quoted in the statement.
The order comes as a shot in the arm for the company which is hit by the persistent slowdown in the automobile sector.
The company reported a 35 per cent decline in total vehicle sales at 9,857 units in October 2019 as against 15,149 units for the same month last year. Total medium and heavy commercial vehicles (M&HCV) sales declined 48 per cent to 5,126 units on a year-on-year basis in October.
Consequently, the Chennai-based company announced that the firm would observe non-working days in plants at various locations ranging from 2-15 days in October. The move, the company said, was undertaken to align their production in line with the company's sales amid a slowdown in sales.
Ashok Leyland had temporarily shut down five of its plants in September as well. While the company’s Pantnagar plant had 18 non-working days, Ennore plant was shut down for about 16 days during the month.
“With this order, our order book for State Transport Undertakings has enhanced significantly. This is a testament to the reliability, durability and robustness of our buses. The cost of ownership and the product experience which we can deliver is the best in the industry,” Sanjay Saraswat, President - MHCV, Ashok Leyland quoted in the press statement.
The shares of Ashok Leyland were trading at ₹82.70 a piece, up 2.41 per cent in morning trade.