ASHOK LEYLAND TARGETS Rs 2,000 CRORE SAVINGS AS COMMODITY COSTS INCREASE

Truck manufacturing company

has set a target to reduce costs by around Rs 2,000 crore over the next 18-24 months as commodity inflation pressures margins, with the company focusing on metal costs, sourcing and value engineering to offset the impact. In fact the company has set up a separate team with a mandate to deliver the targeted cost savings. In order to counter higher input costs, the company has already taken two price increases in FY27, amounting to about 2%. Ashok Leyland sold an average of around 10,000 domestic MHCVs per month last year. The company is seeing growth in LCVs, aftermarket, power solutions, and other businesses, helping to reduce it's exposure to the MHCV cycle.