As the vehicle scrappage policy went into effect this month, top truck and bus manufacturer Ashok Leyland received a sizable order from VRL Logistics for 1,560 trucks for an unknown value as the latter looks to expand and upgrade its fleet by replacing outdated trucks. In addition, VRL Logistics purchased 107 trucks from Tata Motors.
According to VRL, the business must replace its older vehicles as long as the Vehicle Scrapping Policy is in effect. The corporation will probably retire about 1,220 cars in FY24 that have been in service for almost 15 years.
VRL Logistics has budgeted a total of 697 crores for expenditure in FY24 for fleet modernization and expansion. Additionally, VRL Logistics anticipates that the fleet expansion will lessen its reliance on rented trucks. This would also accommodate anticipated increased volumes in the short- and long-term.
Tractor trailers and rigid trucks are among the new vehicles. All around India, these trucks will be put to service. According to Kumar, “These trucks will be equipped with the newest features and technologies, helping VRL have a reduced maintenance time, a higher uptime, and consequently greater operating efficiencies.”
The need for commercial cars has been increasing over the past few quarters, and we anticipate a strong year ahead. Increased government capital spending, favorable macroeconomic conditions, and replacement demand have all contributed to this. We have seen a shift towards higher-tonnage vehicles, which is unmistakably a sign of increased demand, he continued. Over the years, Ashok Leyland has given VRL Logistics more than 5,700 vehicles, 500 of which came in FY23.
