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Ashok Leyland's UK arm Optare intends to diversify its product range by placing in various bus segments across the UK, other markets in Europe, West Asia, Africa and Asian markets to reduce dependency on one section and one market and to improve the topline.
One of the products the company plans to introduce for the export market is double-decker. The company said it continued to invest in new products to secure long-term growth.
“It is time for the company to deliver profitability, which will be driven by the product pipeline, including the double-decker and new products for the export market in 2014,” said P G Nilson, interim chief executive officer, Optare.
He added the consolidation and investment in manufacturing facilities provide the company with stability and a foundation to meet future opportunities and challenges.
In a communication to shareholders, John Fickling, non-executive chairman, Optare, said developing new products for export markets, cost reduction and driving international expansion with Ashok Leyland will be the key focus during the current fiscal.
He said the retail market continued to be suppressed with overall sales volumes flat across all of its traditional markets and overcapacity continued to put pressure on the product price. Continued financial crisis in the EU region coupled with limited access to funding had hit volumes last year.
“...2012-13 saw some exciting products launched like Versa 11.7m, MetroCity and Bonito. The full benefits of these products are expected to be seen in 2013-14,” Fickling said.
The company closed the year with a market share of 36 per cent in the 8-13 tonne segment, which is the primary market for Optare, a growth of 5 percentage points from the previous year.
The company said the UK market would be flat in the near future, but growing opportunities exist in West Asia , Southeast Asia and Africa.
