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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.
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