Hinduja Group flagship Ashok Leyland, stated it has determined to postpone the launch of its complete Phoenix challenge because of the difficult enterprise surroundings proper now owing to coronavirus pandemic.

The Chennai-based firm, which was all set to introduce a slew of sunshine industrial autos (LCV) underneath the Phoenix codename throughout April-Could interval, now plans to launch this challenge in September quarter.

“The mannequin itself is prepared; it’s simply due to the present state of affairs that we’ve got determined to vary the timing. We’ll launch the product inside the subsequent three months,” Ashok Leyland MD Vipin Sondhi stated in an analyst name on June 27th . As per the corporate, the autos underneath this challenge weigh between 5-7.5 tonnes.

With this launch, the truckmaker is anticipating to see large accretion in its LCV enterprise the place it at the moment holds 18 p.c market share. At current, the nation’s second-largest industrial automobile producer has three platforms within the LCV class – Dost, MiTR and Associate. Positioned within the items service class, Ashok Leyland’s Dost is the preferred product in LCV area which is available in 5 variants with a gross automobile weight (GVW) of 2-3.5 tonnes.

Within the Intermediate Business Automobile (ICV) section, the corporate claims to have the biggest variety of choices and variants together with Boss and Guru fashions. “Now we have methodically grown our presence within the ICV section over the previous few years the place we at the moment maintain about 22 p.c market share, which has been fairly more healthy than the previous year,” Gopal Mahadevan, Director & CFO, Ashok Leyland stated.

Earlier this month, the corporate launched a modular truck platform AVTR with BS-VI engine that enables prospects to configure the medium and heavy industrial autos (M&HCV) in keeping with their necessities. This new platform will produce a slew of inflexible vans, tippers and tractors within the 18.5 tonnes to 55 tonnes class.

“With the AVTR platform, we have transformed three platforms into one. We’re assured that we’ll proceed to reinforce our concentrate on each ICV and tippers. Lengthy-haul will at all times stay core,” Sodhi highlighted.

When queried concerning the capex estimation for this ongoing fiscal, Sondhi with out disclosing the precise figures stated that the key Capex cycle for the instant is over. Nevertheless, throughout an analyst name within the month of February, the corporate has determined to not exceed its routine capex past Rs 400 – 500 crore for the following 4-5 years.

Ashok Leyland closed the monetary yr 2019-2020 with a detrimental working capital of Rs 700 crore and about 35 p.c decrease capex spending. The capex of the corporate in FY’20 stood at Rs 1,227 crore as in opposition to the deliberate funding of Rs 2,000 crore.