Ashok Leyland secures largest bus order worth ₹981.45 Crore from MSRTC

15 Jul 2024 , 01:40 PM

Ashok Leyland Ltd announced on Monday that it secured the largest fully built bus order from the Maharashtra State Road Transport Corporation (MSRTC) for 2,104 Viking passenger buses valued at ₹981.45 crore.

As of July 15, at 1:12 pm, Ashok Leyland shares were trading at ₹227.47, marking a 1.43% gain from the previous close. The stock has shown a 31% increase over the last year and a 22% gain since the beginning of the year.

Located in Chennai, Ashok Leyland operates several manufacturing facilities across India, including Ennore, Bhandara, two in Hosur, Alwar, and Pantnagar. Internationally, it has manufacturing units in Ras Al Khaimah (UAE) for buses, Leeds (UK), and a joint venture with Alteams Group for aluminum components.

MSRTC, one of India’s largest state transport undertakings with over 15,000 buses, will see a significant addition to its fleet with this order.

Ashok Leyland’s modern buses will adhere to the latest CMVR standards and feature AIS 153 compliant bodies, iGEN6 BS VI OBD II technology with a 197 HP H-Series Engine, and Rear Air Suspension.

The buses will be produced at Ashok Leyland’s state-of-the-art bus body plants, ensuring enhanced safety, improved comfort, and a lower total cost of ownership for MSRTC.

Shenu Agarwal, Managing Director & CEO of Ashok Leyland, expressed excitement about the continued partnership with MSRTC.

He highlighted the company’s commitment to producing efficient and technologically advanced products, driving the growth of public transportation in India. As of March 2024, promoters held a 51.52% stake in Ashok Leyland.

Ashok Leyland, an Indian multinational automotive manufacturer headquartered in Chennai, is a key player in the commercial vehicle industry. Founded initially as Ashok Motors in 1948 and rebranded in 1955 following a collaboration with British Leyland, Ashok Leyland is now part of the Hinduja Group.

It holds significant market positions, being India’s second-largest commercial vehicle manufacturer with a 32.1% market share in 2016. Globally, it ranks as the third-largest bus manufacturer and the tenth-largest truck manufacturer.

The company’s product range spans from 1T to 55T GVW trucks, 9 to 80-seater buses, and specialized vehicles for defense and other applications. It also produces diesel engines for industrial, genset, and marine applications. Ashok Leyland’s focus includes passenger transportation options from 10-seater to 74-seater vehicles, with a strong presence in the 16 to 25-tonne truck segment and ranging from 7.5 to 49 tonnes in trucks.