Chennai: Commercial vehicle major Ashok Leyland Ltd is targeting to save about Rs 500 crore in operating costs by sifting through the expense heads while investing about Rs 1,700-2,000 crore for capex, a senior official said on Thursday.
Whole Time Director and Chief Financial Officer Gopal Mahadevan also said the company is likely to stop production of BS IV vehicle chassis from January 2020 end. The company will continuing to roll out fully-built BS IV vehicles and also start rolling out BS VI emission norms complaint vehicles.
“We are targeting to cut about Rs 400-500 crore of operating costs. We want to take that out of the system," he told reporters here. Queried about the areas of cost reduction, Mahadevan said: "We are studying our distribution costs and see how it could be done in a more cost effective manner. Similarly, we are also looking at cutting down the administrative overheads." (IANS)