00:00 We are here at the Bharat Mobility Global Expo and we are standing at the Ashok Leyland's booth and
00:05 Event is looking like a big event and we have with us. Mr. Shenu Agarwal, Ashok Leyland's CEO
00:12 So first of all, sir, the kind of product that you are showcasing here a little bit about that
00:16 Yeah, we are actually very happy today
00:19 It's a proud moment for us because last year in the Auto Expo
00:23 You see we had a host of vehicles with all these new technologies
00:26 But these were like those were still kind of concept vehicles not ready to go to the market
00:31 But in a short period of one year, we have at least two of these vehicles the boss the boss
00:36 14 ton electric and this one avatar which is 55 ton electric tractor-trailer
00:41 We are actually delivering the keys of the first set of vehicles to our customers. Yeah, so from
00:47 the confidence that we have
00:51 We have gained or the maturity we have achieved the technology within a one-year period from a concept to something which we are ready
00:58 To deliver to the market. We are very happy and proud about that
01:01 Of course, we have more vehicles over there and very soon all these vehicles within the span of next one or two years
01:08 We'll see the light of the day and we will start doing some market trials market pilots of those as well
01:14 there are a bit of concerns about batteries powering heavy vehicles and very
01:21 Medium and heavy commercial vehicles. So what is your view on that?
01:24 That is it enough to power a big vehicle and get that kind of efficient efficiency that we are getting in the ice
01:30 Categories. Oh, absolutely. Absolutely. I don't think there are any concerns, you know, actually
01:35 Actually, it's a different technologies have different pros and cons, right?
01:40 So, of course when you look at very very long distances, yeah
01:44 Then maybe hydrogen ice or hydrogen fuel cell can be more efficient
01:50 Right, if you look at small to medium kind of distances electric is very efficient. There is no doubt about that
01:55 Yeah, so see the idea is that this whole market or this whole thought process is still maturing, right?
02:02 We are going through a transition
02:03 So we had a show Cleland what we are focusing on is to kind of develop a host of these solutions in
02:10 different segments in different situations and mature them over time like I always say
02:16 you know a show Cleland is number two in the market right now right and medium and heavy duty and
02:21 Therefore we are a challenger right for a challenger
02:25 These opportunities are great because we kind of love these because when something changes, you know
02:31 When some disruption happens in the market
02:34 Then we get a huge opportunity to take the lead in that changing technology or that disruption and disrupt the pecking order
02:42 So we are loving it. We are focusing heavily on this whole game of alternate fuels and
02:48 Hopefully, you know, we'll be the first one to to bring it to the market
02:53 the budget came out yesterday and there was again a great focus on infrastructure development and that is very crucial for the
03:01 commercial vehicle category of automobiles, so
03:04 What do you think from the perspective of a commercial vehicle maker?
03:08 That how the budget is looking like and what the vision is for the country and for the commercial vehicle industries
03:14 I think budget is fantastic. You know, I think I think the best thing that I like about
03:20 The budget is the consistency of government's approach, you know in investing in infrastructure and the core sectors of the country
03:29 That is the best thing I like, you know, so there is no like okay this year. We'll do that next year
03:34 We'll do something else right if you look at the consistency in the last five or six or more years
03:39 you know that is really really important and you know that there is there has been a
03:44 Greater allocation and most of the core sectors including infrastructure development whether it is railway or road or other things and all this is going
03:52 To help a CV industry
03:54 Tremendously, there was a mention of payment security mechanism for the e-buses as well
03:59 And last time in the tender bidding we saw that there no one participated because of the same reason
04:04 So do you think that a major roadblock is out of the way and now we can see companies participating in the bidding of tenders?
04:11 I think so
04:12 I think I would like to compliment actually the government to listen to the industry and their
04:16 Their apprehensions and come up with such a fantastic scheme
04:19 I think it was kind of led by the Prime Minister of the country himself because
04:24 What has been put together is really fantastic
04:27 Although the details of all this is are yet to be kind of rolled out
04:32 But I think it is a great move and I think you will we will see a lot of interest from
04:36 Ashok Leland and our peers in the future tenders
04:39 last question from me because we have talked before as well about the margins and that you had said that because of the
04:46 players being a number of players being lower in the industry and because of the needs of the industry to
04:52 Invest further for the new technologies the margins need to rise. So I have talked to other players as well
04:58 They agree that the margins need to rise. So what is stopping the industry to raise those margins? I
05:03 Don't think anything will stop the industry. I think everybody believes that margins have to be hired
05:11 I think we are like one of the one of the lesser
05:14 EBITDA margin sectors even within the automotive
05:18 Yeah
05:18 so
05:19 I think everybody understands that need and I think nothing is going to stop as long as the top leaders of the companies they believe
05:25 in this
05:27 As you know, I mean, of course this will happen over a medium to long period because you can't just change the scenario overnight
05:34 But I think that is the way this industry is going at Ashok Leland
05:38 We are very very committed
05:39 You know on this because we have already went ahead and really said that our focus will have to be on the margins
05:46 So we are very very focused. We are maintaining a lot of price discipline
05:50 We are putting a lot of effort in making our products better in a lot of ways so that we can come on better pricing
05:56 you know, we are
05:58 Many times when it comes between profit and market share, we would like to sacrifice market share for a profit
06:05 We are very clear about that. Thank you so much for speaking to any to protect you. Thank you so much
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