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Key Points

Ashok Leyland's Sanjeev Kumar highlights how India's improved highways are slashing travel times by 50%, directly reducing logistics costs. The CV industry anticipates steady 3-5% growth this year, marking four consecutive years of expansion. Kumar notes India's shift toward higher-capacity trucks and prime movers as infrastructure supports larger fleets. With GDP growth driving demand, the commercial vehicle sector remains a key beneficiary of India's economic momentum.

Key Points: Ashok Leyland's Sanjeev Kumar Says Road Infrastructure Cuts Logistics Costs

  • Road infrastructure upgrades cut travel time by 50%
  • CV industry expects 3-5% growth in FY24
  • Shift to higher tonnage trucks improves efficiency
  • Strong GDP growth fuels commercial vehicle demand
2 min read

Improved road infrastructure to cut travel time which will lower overall logistics cost: Ashok Leyland's Sanjeev Kumar

Ashok Leyland executive highlights how improved highways and reduced travel times will lower logistics costs and boost India's CV industry growth.

"New highways are being built, and travel times are being reduced by almost 50 per cent. This will play a crucial role in lowering India's overall logistics costs. – Sanjeev Kumar, Ashok Leyland"

New Delhi, June 25

India's commercial vehicle (CV) industry is poised for steady growth, driven not only by strong economic fundamentals but also by rapid infrastructure development.

Sanjeev Kumar, President - M&HCV at Ashok Leyland, said, "The overall road infrastructure is improving significantly. New highways are being built, and travel times are being reduced by almost 50 per cent. This will play a crucial role in lowering India's overall logistics costs."

Ashok Leyland, one of India's leading commercial vehicle (CV) manufacturers, remains optimistic about the growth prospects of the CV industry in the current financial year, backed by a strong economic outlook, infrastructure improvements, and changing industry trends.

Speaking on the industry outlook, Sanjeev Kumar said, "The CV industry saw a growth of 3 per cent last year. For the current year, we expect the industry to continue on a positive trajectory with a single-digit growth of around 3 to 5 per cent. This will mark the fourth consecutive year of sustained growth for the CV sector."

He highlighted the unusual stability the industry is currently experiencing. ""So generally, if you look in the past, after every 2nd year, we have seen a down trend. So this is the 4th year running and we are quite upbeat about CV industry," Kumar said

Kumar also emphasized the role of macroeconomic indicators in driving CV demand. "India continues to be a bright spot in, overall world economy, and when GDP grows, the major beneficiary is always the CV industry. You have more consumption. You have core industries are doing well, and it really helps in the CV industry as we are the major players who are going to benefit from this growth," he said.

In addition to economic growth, structural changes within the industry are also contributing to its strength. Kumar pointed out that India is transitioning from using smaller tonnage trucks to higher capacity vehicles and prime movers.

Kumar stated, "With a better intra-industry going through a transition, where, earlier we used to go for small tonnage trucks, now India is going through this transition where we are going for higher tonnage trucks. We are going through prime movers because in truck can support that. So it may not lead to a reduction in the cost of the trucks, but it will definitely make the overall cost of running the truck competitive."

- ANI

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Reader Comments

R
Rahul K.
This is excellent news! Better roads mean faster deliveries and lower costs for everything from vegetables to electronics. My uncle who runs a transport business has been saying the same - his fuel costs have reduced by 15% after the new expressway opened. 🇮🇳
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Priya M.
While infrastructure is improving, I hope the government also focuses on driver welfare. My husband is a truck driver and works 14-hour days. Better roads are meaningless if working conditions don't improve. More rest stops and facilities along highways please!
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Arjun S.
The shift to higher tonnage trucks is smart - more cargo per trip means fewer vehicles on road. But what about electric CVs? Ashok Leyland should invest more in green technology. China is already ahead in this space and we can't afford to lag behind.
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Sunita R.
As someone from a small business family, I can confirm logistics costs make a huge difference. Last year we paid ₹2.5 lakh just to transport goods from Delhi to Chennai. If new highways can bring this down even by 20%, it would be a big boost for MSMEs like ours.
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Vikram J.
Good analysis by Mr. Kumar. The Delhi-Mumbai expressway has already shown what's possible - travel time reduced from 48 hrs to 24 hrs! But state highways still need work. Hope state governments also prioritize road infrastructure equally. #MakeInIndia
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Neha P.
The growth projections seem modest but realistic. Unlike some analysts who predict 10% growth every year, 3-5% is achievable. Quality over quantity - let's build sustainable growth rather than boom-bust cycles. Kudos for the balanced view!

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