The Hindu : Business : `Economic buoyancy spurs growth of CVs'

Online edition of India's National Newspaper
Friday, Oct 27, 2006
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`Economic buoyancy spurs growth of CVs'

Staff Reporter

KOCHI: Major retail chain expansion and boom in consumer goods sale augur well for the commercial vehicles segment, according to Ramji Narayanaswamy, Regional Manager (South), Ashok Leyland Limited.

He was speaking on the occasion of the launching of the new truck `Comet 1611' here on Thursday.

Noting that there was larger movement of parcel courier, LPG cylinders and petroleum products, he said the new vehicle was targeted primarily at these segments. Development of two-tier cities too was a favourable aspect for the growth of the commercial vehicles segment.

The continued buoyancy in the economy and the rise in fuel prices were other factors that led to the growth of fuel-efficient commercial vehicles. There was significant increase in investment by the Government and private sector in infrastructure projects. He claimed that the new vehicle featuring a factory-built cab offered a 10 per cent saving in fuel costs. Fuel accounts for over 60 per cent of the operating cost for a truck, he said.

The company, part of the Hinduja Group, has 156 dealer outlets and 144 authorised service centres in the country.

Mr. Narayanaswamy pointed out that specialised vehicles, tailor-made for specific applications, were a feature of the maturing industry. Customers stood to gain from fully built bodies such as containers and tankers, he said.

K.V. Balasubrahmanyam, V.S. Ravichandran and S. Ramesh were among the top executives of Ashok Leyland and TVS who were present on the occasion.

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