Ashok Leyland is set for an ambitious product offensive programme in FY25, particularly targeting the light commercial vehicle (LCV) segment, with a proposed capital expenditure of ₹500-700 crore for the current fiscal year.

“We currently cover about half of the LCV market in India. Our goal is to expand our LCV product portfolio to capture at least 70-80 per cent of the market over the next few years. The LCV segment offers significant growth potential for our overall commercial vehicle volumes,” said Dheeraj Hinduja, Chairman of Ashok Leyland Ltd.

LCV focus

The Hinduja flagship is planning at least six products in the LCV segment during this fiscal. “Starting this month, we will launch a new LCV product every alternative month. Some of the new products are meant for addressing white spaces in the market,” Shenu Agarwal, MD & CEO of Ashok Leyland said.

Last year, the company indicated its interest in entering sub-1 tonne through an introduction of a mini truck sometime this year. However, Agarwal declined to confirm whether the proposed launch programme will include a new mini-truck. Currently, Ashok Leyland serves the 2-3.5 GVW category of the small commercial vehicle market with its Dost and Bada Dost pickups, holding a 20 per cent market share and aiming for 25 per cent in the medium-term.

While focusing on the LCV segment in FY24, Ashok Leyland also aims to strengthen its position in the bus segment, particularly the intermediate commercial vehicle (ICV) segment, where its market share is currently low. The company has regained leadership in the medium and heavy-duty bus segment with significant market share gains in FY24. “Our focus will be on the ICV segment while maintaining our market share in State Transport Undertakings (STUs) and other categories,” Agarwal added.

Alternative fuel products

Discussing alternative fuel-powered products, Hinduja stated that the company delivered its first battery electric ICV BOSS in Q4FY24 and plans to deliver its first electric tractor-trailer in the coming months. “We are conducting customer pilots for our hydrogen ICE trucks and are ready to deliver our first fuel cell buses to NTPC. Our LNG truck has also been delivered. We now offer a complete portfolio of alternative fuel vehicles,” he said.

The company has started delivering its first electric small commercial vehicle, the ieV4, and plans to introduce its second offering, the ieV3, in the next few months.

Hinduja emphasised the company’s focus on increasing market share across regions of the country. It plans to achieve a 30 per cent market share in Northern and Eastern regions. Currently, the Northern market stands at 25 per cent and the Eastern region is close to 25 per cent. In the Western and Central regions, Ashok Leyland aims for a market share of above 35 per cent, with current shares at 32 percent and nearly 30 per cent, respectively. The Southern market remains its stronghold with a market share of 40-45 per cent.

Related Topics