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The Hinduja Group company has said that it is considering hiking the prices of its products before March due to rising commodity prices
The Hinduja Group-promoted Ashok Leyland Ltd on Wednesday said that it would hike prices of its commercial vehicles (CVs) shortly due to rising input costs, reports PTI.
"Commodity prices are going up and we are already considering hiking the prices of our products. It will happen shortly, before March," Ashok Leyland's managing director R Seshasayee told reporters in New Delhi at the 10th Auto Expo.
He, however, said that there has been a surge in demand for CVs in the last two quarters and the company expects to close this fiscal at a total sales of about 62,000-63,000 units.
When asked about the sales prospects for the next fiscal, he said, "It (growth) should be in double digits."
Mr Seshasayee also said that the government must not withdraw the stimulus package provided by it in the wake of the economic downturn.
He said excise duty reduction, especially in the CV segment, should not be treated as stimulus. The government has cut excise duty on CVs to 8% in phases to spur growth.
"The CV (segment) deserves lower excise duty, therefore that must continue," he said.
Ashok Leyland also said that it would execute orders received from 21 state transport bodies for supply of buses by 31st March this year under the Jawaharlal Nehru National Urban Renewable Mission. Of the 11,000 orders placed by different state bodies, the company got 51% orders.