Industry Profile: Indian automobile industry is one of the largest and most competitive in the world. In FY 15-16 production total was 23.96 million vehicles. The sector accounts for 7.1 percent of the GDP of India, out of which 81% is the Two-wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 percent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs, and contribute over 12 percent to India’s Gross Domestic Product. Maruti in Car and Hero Moto corp is in the Two-wheeler market and is the leader. Passenger Vehicle holding 13% market. Maruti Suzuki expects the Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr. Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is an important market for the company in terms of volumes and as a hub of small products for exports to 92 countries. Like many companies trying to increase revenue, the rural market is significant for further growth. India is also one of the leading exporters of automobiles and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 percent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 percent, 16.97 percent, and 0.97 percent, respectively, in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion from April 2000 to September 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars to India.
Company Profile: The company is an Indian automobile manufacturer and manufactures an extensive portfolio of CV, Passenger vehicles. It is the 2nd largest commercial vehicle manufacturer in India, 4th largest manufacturer of buses worldwide, and 12th largest manufacturer of trucks globally. Operating nine plants, Ashok Leyland also makes spare parts and engines for industrial and marine applications. It is India’s second-largest commercial vehicle company in the medium and heavy commercial vehicle (M&HCV) segment, with a market share of 32.1% (FY 2016). With passenger transportation options ranging from 10 to 74 seats, Ashok Leyland is a market leader in the bus segment. The company is also operating in the Defence sector and is the beneficiary of Smart cities as the leading manufacturer of Buses.
shareholding pattern:
Financials and ratios : [table id=86 /]
Future prospectus: Being one of the large Commercial Vehicle manufacturers in India, the company is closely attached to Capital investment activity. While writing this, there are some green shoots in the Indian economy after digesting two back-to-back shocks, namely Demonetization and GST. Now, the economic activity is picking up. So the company is one beneficiary of it.
