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Private Sector | Tamil Nadu - India | PID: 201809
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In a significant development, Ashok Leyland has clinched a substantial order from the Tamil Nadu government for the procurement of 1,666 buses, with a total order value of ?371.16 crore. This order, placed by the State government on behalf of various State Transport Undertakings, is specifically for the acquisition of BS VI bus chassis
Shenu Agarwal, the Managing Director and CEO of Ashok Leyland, expressed their delight, stating, “We are delighted to have received the single-largest BSVI order from Tamil Nadu State Transport Undertakings.” This marks a noteworthy milestone for the company as they anticipate surpassing 19,000 buses operating with TN STUs
Ashok Leyland has maintained its prominent position as the preferred brand for Tamil Nadu's State Transport Undertakings, with over 18,000 Ashok Leyland buses currently in operation, constituting more than 90% of the total fleet, as per a company statement
The Hinduja Group's flagship company has been successful in securing several bus orders in recent months, solidifying its dominant position in the bus industry. During the first quarter of this fiscal year, total bus volumes, both medium and heavy-duty, experienced a remarkable growth of 39%, while Ashok Leyland's bus sales surged by an impressive 93%. In addition, the company's bus market share witnessed a substantial increase, rising to 28.1% in the June 2023 quarter from 20.2% during the same period last year
Rating agency ICRA has projected a robust growth rate of 12-15% for the bus segment in the fiscal year 2024. This growth can be attributed to factors such as a low base, the reopening of offices and educational institutes, and replacement demand, all of which supported a 2.6x increase in volumes for the segment in the fiscal year 2023. Ashok Leyland's recent successes reflect the company's strategic positioning to capitalize on this growing market
| Updated on: 16 - Oct - 2023
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