After posting healthy increase in sales volumes in the third quarter (October-December 2010), Hinduja

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flagship Ashok Leyland has started the fourth quarter with a marginal drop in commercial vehicle sales in January 2011, compared with a year-ago period. The company’s total vehicles sales stood at 7,711 units (domestic 6,880 units and exports 831 units) compared with 7,871 units in January 2010.

However, the company has seen only a marginal rise in total vehicles sales compared with 7,568 units in December 2010.

Total production stood at 8,582 units for January 2011, against 6,848 units in January 2010 and 9,088 units in December 2010.

Domestic sales of medium and heavy trucks stood at 5,154 units in January compared with just 5,779 units in January 2010. However, this January sales were up 18 per cent against 4,353 units in December 2010.

For the period April 2010-January 2011, total vehicle sales grew by 57 per cent to 72,137 units compared with 45,990 units in the same period a year ago.

The company had projected a sales volume of about 10,000 units a month in the January-March 2011 period and gave guidance for full-year volume at 95,000 units.

Overall, the commercial vehicle industry recorded 23.42 per cent growth in truck sales (5-49 tonne category) during January 2011 compared with the year-ago period. Sales were up primarily due to impending increase in auto finance charges, likely increase in excise duty due to withdrawal of economic stimulus, and to take advantage of depreciation allowance on income and fleet migration into the multi axle-vehicle segment by transporters, according to IFTRT (Indian Foundation of Transport Research & Training).