Ashok Leyland enters used vehicles business in South India

Kochi, May 30 (UNI) Commercial vehicle major Ashok Leyland today announced its entry into used vehicle market in South India with the launch of 'Altrux' brand of refurbished second-hand trucks here.

Announcing the launch of the 'Altrux' vehicles at a function here, Ashok Leyland Special Director V M Hombali said the estimated market for used commercial vehicles in the country was 100,000 vehicles per year.

"The market is growing. Ashok Leyland is the first commercial vehicle manufacturer in the country to get into this area which is completely in the unorganised sector at present," he added.

The company launched the Altrux vehicles in Jaipur two days ago and in South India they launched it first in Kerala. Another seven to eight states would be covered during 2007-08 and the entire country by 2009, he said.

"We are targeting a 15 per cent market share of the used vehicles business in the next three years," he said.

He said the company would buy used Ashok Leyland vehicles from the market and re-condition them using an exhaustive 140-point checklist. The refurbished vehicles would carry a six-month warranty.

Finance would also be arranged for the vehicle purchasers through tie-ups with financial agencies.

T V S Sons Executive Director R Dinesh said the Altrux vehicles would be marketed through the 15 TVS outlets in Kerala.

Lauding the Kerala Government for being the first state government to implement VAT for sale of used commercial vehicles, Mr Dinesh said Ashok Leyland sold about 1,700 vehicles in Kerala every year. It was expected that the 'Altrux' vehicles would add another 400 vehicles to these sales.

Mr Hombali said Ashok Leyland, the second largest commercial vehicle manufacturer in the country, posted a sale of 83,094 vehicles during 2006-07, a record-high, which was 35 per cent more than the sales during 2005-06.

UNI