Statement from Ashok Leyland on transition to BS IV norm

Mr. Vinod K. Dasari, MD and CEO, Ashok Leyland Ltd.

Contrary to the various reports in the media about Ashok Leyland having to take a huge write-off of BS III inventories, the Company clarifies that in-fact the impact will be minimal.

Ashok Leyland has been making BS IV vehicles since 2010 and has sufficient capability and capacity to make BS IV vehicles.  However, since BS IV Commercial Vehicles cannot run properly on BS III fuel – and such fuel is not available nationwide – our customers continued to buy BS III vehicles.

Given the current demand, majority of the vehicles in the pipeline have already been sold.  Some more will be sold in the next couple of days where we have customer orders.  Of the little inventory that we expect to remain beyond this, we will export them to other markets where we have significant presence and still operate on BS III norms.  Finally, for any other vehicles still leftover, the Company confirms that it will be able to easily upgrade them to BS IV at minimal cost.”