Ashok Leyland Ventures into Vehicle Scrappage
ECONOMY & POLICY

Ashok Leyland Ventures into Vehicle Scrappage

Ashok Leyland, a leading truck and bus manufacturer, is set to launch its first-ever vehicle scrappage facility under a franchise model. The company has finalized an agreement with a Registered Vehicle Scrapping Facility (RVSF), placing it in a strategic position to advance its circular economy goals and reduce environmental impact, as highlighted in its FY24 annual report.

In addition to this milestone, Ashok Leyland is developing a digital platform named Re.AL, aimed at facilitating the resale of used vehicles in compliance with the government-mandated vehicle scrappage policy. This initiative is expected to drive growth in the commercial vehicle industry, fueled by replacement demand, mandatory scrapping of older government vehicles, and steady macro-economic growth.

Dheeraj Hinduja, Chairman of Ashok Leyland, emphasized the company's commitment to alternative fuel technologies, including battery electric, hydrogen ICE, fuel cell, LNG, and CNG. With products already operational in CNG and LNG segments, and prototypes of green hydrogen trucks in actual conditions, Ashok Leyland is well-positioned to offer a comprehensive range of clean energy vehicles.

Ashok Leyland's subsidiary, Switch Mobility, is making significant strides in the green mobility space, focusing on electric buses and light commercial vehicles. With over 950 electric buses deployed globally and a growing order pipeline, the company plans to expand its sales into the European market later this year. Recently, the launch of the Boss electric truck and the upcoming fully electric 55-tonne tractor-trailer further signify its commitment to the EV sector.

In FY24, the company's R&D spend increased to 1.30% of turnover, reflecting its dedication to innovation. Investments included ?15.25 billion in mobility arms, with substantial stakes in OHM Global Mobility Pvt Ltd and Optare Plc., UK.

Ashok Leyland is also broadening its traditional ICE segment portfolio, with plans to introduce at least six new light commercial vehicle products this fiscal year. The company reported that over 30% of its FY24 sales came from newly launched products.

Despite these advancements, Ashok Leyland?s share closed at ?234.25 per share, down 1.91% on BSE

Ashok Leyland, a leading truck and bus manufacturer, is set to launch its first-ever vehicle scrappage facility under a franchise model. The company has finalized an agreement with a Registered Vehicle Scrapping Facility (RVSF), placing it in a strategic position to advance its circular economy goals and reduce environmental impact, as highlighted in its FY24 annual report. In addition to this milestone, Ashok Leyland is developing a digital platform named Re.AL, aimed at facilitating the resale of used vehicles in compliance with the government-mandated vehicle scrappage policy. This initiative is expected to drive growth in the commercial vehicle industry, fueled by replacement demand, mandatory scrapping of older government vehicles, and steady macro-economic growth. Dheeraj Hinduja, Chairman of Ashok Leyland, emphasized the company's commitment to alternative fuel technologies, including battery electric, hydrogen ICE, fuel cell, LNG, and CNG. With products already operational in CNG and LNG segments, and prototypes of green hydrogen trucks in actual conditions, Ashok Leyland is well-positioned to offer a comprehensive range of clean energy vehicles. Ashok Leyland's subsidiary, Switch Mobility, is making significant strides in the green mobility space, focusing on electric buses and light commercial vehicles. With over 950 electric buses deployed globally and a growing order pipeline, the company plans to expand its sales into the European market later this year. Recently, the launch of the Boss electric truck and the upcoming fully electric 55-tonne tractor-trailer further signify its commitment to the EV sector. In FY24, the company's R&D spend increased to 1.30% of turnover, reflecting its dedication to innovation. Investments included ?15.25 billion in mobility arms, with substantial stakes in OHM Global Mobility Pvt Ltd and Optare Plc., UK. Ashok Leyland is also broadening its traditional ICE segment portfolio, with plans to introduce at least six new light commercial vehicle products this fiscal year. The company reported that over 30% of its FY24 sales came from newly launched products. Despite these advancements, Ashok Leyland?s share closed at ?234.25 per share, down 1.91% on BSE

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