Ashok Leyland has bagged an order from the Tamil Nadu government for the supply of 1,666 buses at a cost of ₹371.16 crore. The State government has placed the order on behalf of its various State Transport Undertakings. The order is for the procurement of BS VI bus chassis.
“We are delighted to have received the single-largest BSVI order from Tamil Nadu State Transport Undertakings,” said Shenu Agarwal, MD & CEO, Ashok Leyland.
“With this order, we are bound to cross the prestigious milestone of over 19,000 of our buses operating with TN STUs, said Sanjeev Kumar, President, M&HCV, Ashok Leyland.
Ashok Leyland has been the most-preferred brand by Tamil Nadu’s State Transport Undertakings, with more than 18,000 Ashok Leyland buses operational in its fleet, comprising over 90 per cent of the total fleet, according to a company statement.
The Hinduja flagship has won a few bus orders in recent months, helping it strengthen Ashok Leyland’s dominant position in the bus industry. During Q1 of this fiscal, total bus volumes (medium and heavy duty) grew by 39 per cent, while Ashok Leyland’s bus sales grew by 93 per cent. The company’s bus market share also improved by 7.9 per cent to 28.1 per cent in June 2023 quarter from 20.2 per cent in the year-ago period.
Rating agency ICRA has projected a strong growth of 12-15 per cent for the bus segment in FY24. The segment recorded 2.6x volumes in FY23, supported by a low base, opening up of offices and educational institutes, and replacement demand.