ICICI Securities: Ashok Leyland - Bada Dost Likely To Drive LCV Market Share Gains

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Ashok Leyland Ltd. hosted an investor interaction for it the first product launch (Bada Dost) on its indigenous light commercial vehicle Platform - Phoenix, current launch will improve product coverage to approximately 50% of total addressable market, progressively via future product launches would further rise to approximately 65%.Key takeaways are below -Bada Dost is launched with tonnage capacity of 2.99 tonne (i3) to 3.49 tonne (i4) with high focus on customer ease and savings in mind.Features like default power steering and air conditioning (higher variant) is reflective of the comfort focus.While Bada Dost is launched at 10-12% premium in price but with 40% higher payload, overall economics (cost per tonne km) is superior to peers as well as sub-2 tonne segment.Launch of Bada Dost is expected to double the addressable market to approximately 65% of the total market size (FY19) of 493k units (current: 34%) with 50% being addressed immediately with the launch.Ashok Leyland has incurred a capex of Rs 3.5 billion on Project Phoenix, plans to launch further seven to eight products..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Ashok Leyland - Bada Dost Likely To Drive LCV Market Share Gains

While Ashok Leyland’s Bada Dost is 10-12% costlier than peers, its 40% higher payload and cost per tonne km is superior.

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