Commercial vehicle major Ashok Leyland, a pioneer in the truck business, now has around 50 per cent of revenue coming from non-truck business, the company’s CFO KM Balaji told analysts in a recent earnings call.

In FY ‘22, the share of domestic truck business was 60 per cent, which is down to 51 per cent now, he added.

Shenu Agarwal, Managing Director and CEO, Ashok Leyland, said some of these businesses have much higher margins than what the company earns on the trucks. “Many worry about the cyclicity in the truck industry, especially the heavy-duty trucks. We have positioned the company in a way that even if there is a slight drop in the truck market, we should be quite fine with our profitability,” he said.

Current capacity on light commercial vehicles (LCV) is close to 80,000 units

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