New Delhi: Hinduja group flagship Ashok Leyland is looking to strengthen presence in the country's logistics sector that is estimated to touch USD 370 billion by 2020.
The company is enhancing its range of fully built vehicles in order to tap the sector which is expected to grow at a CAGR of 16 per cent. The Chennai-based firm, which is the second largest commercial vehicle manufacturer in the country, has around 45 per cent share in the truck segment in the logistics sector.
"We want to further strengthen our position through our vehicles, offering the latest in technology, which help our customers earn better margins," Ashok Leyland President Global Trucks Anuj Kathuria said.
While the inflow on new investments will create new opportunities in this sector, the Make in India campaign will see these investments connect India to global markets, he added.
"Trucks are the most popular mode, accounting for 65 per cent of freight in India, translating into a big opportunity for manufacturers like us to contribute to the positive change in making our country's logistics sector globally competitive," Kathuria said.
The scope of improvement of efficiencies is huge as India spends around 14 per cent of its GDP on logistics and transportation compared to 8 per cent in other developing countries, he added.
"With a renewed push from the government for infrastructure and integrated, multi-modal logistics and transport policy, we expect a lot of improvements in this sector.
Estimates of this sector are projected to be worth USD 370 billion by the year 2020," he added. The company today showcased its range of fully built logistics vehicle solutions here.