PM's reforms-cum-stimulus will help CV industry: Ashok Leyland's Sondhi

The company commenced operations across its facilities

The commercial vehicle industry will stand to gain as the economy starts to move again on the back of reforms-cum-stimulus announced by Prime Minister Narendra Modi on Tuesday, says Vipin Sondhi, Managing Director & CEO, Ashok Leyland Limited.

Meanwhile, the company started operations across its facilities.

“With the relaxation of the lockdown, we have resumed operations in all our plants across the country, after obtaining necessary approvals from the relevant authorities," he said.

The company will gradually ramp up production across facilities after taking into consideration the Work in Progress (WIP) that were on hold at the time of announcement of lock-down, the supply chain readiness after opening and most importantly the preparedness of the ancillary units to supply us critical components, for sustained production of vehicles.

"The address by our Prime Minister has lifted spirits and created positive sentiments. It was inclusive, comprehensive, and compelling", says Sondhi.

He added, while he awaits the details, the announcement of reforms-cum-stimulus to the tune of 10 per cent of GDP, amounting to Rs 20 trillion has the potential to be sustainably beneficial to all sectors of the economy.

"Industry and in particular the CV industry will stand to gain as well as the economy starts to move again," he said.

The massive thrust on self-reliance, along with the focus on creating local demand, and resurrecting local supply chains should provide enough impetus to kick start the economy. All these measures are the need of the hour and frankly more than expected given the limited fiscal room that was available, he added.

"With the pride of Make in India through quality, we look forward to a stronger, self-reliant India where everyone prospers,” said Sondhi.

Earlier he said, the current situation presents an opportunity for the country to attract FDI from corporations.

“Over the next 18 - 24 months, we as a nation would do well to focus on developing state-of-the-art, technology-enabled industrial parks owned by the State Industrial Development Corporations or co-owned through Public-Private Partnerships or through 100 per cent private investments," he said.