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Ashok Leyland Aims to Boost Market Share and Expand Presence in North India
ECONOMY & POLICY

Ashok Leyland Aims to Boost Market Share and Expand Presence in North India

Hinduja Group flagship Ashok Leyland is targeting a market share of 30 per cent in the medium and heavy commercial vehicle (M&HCV) segment in North India over the next 2–3 years. The company also plans to expand its presence in the region by establishing a workshop every 50 kilometres during the coming years.

In FY25, Ashok Leyland held a market share of nearly 26 per cent in North India’s M&HCV segment, with volumes of around 33,000 units. Its market share stood at over 40 per cent in South India, above 35 per cent in West India, and close to 24 per cent in East India. Overall, industry-wide M&HCV volumes were approximately 380,000 units in FY25, of which Ashok Leyland accounted for 113,000 units, achieving a 30 per cent national market share. The M&HCV category comprises vehicles with a gross vehicle weight between 7.5 metric tons and 55 metric tons.

The company’s network in the M&HCV segment has expanded significantly—from 679 outlets in FY21 to 1,051 outlets across India in FY25—supporting sales, service, and parts distribution.

Ashok Leyland is focused on defending its strong market position in South and West India, while enhancing its penetration in North and East India. North India is viewed as a key market, given its status as the largest contributor to industry volumes. The region’s high demand for trucks is driven by major economic activities, including the presence of large e-commerce businesses, significant two-wheeler and car manufacturing hubs, infrastructure development such as new highways, and industrial growth, including cement plants in Rajasthan. North India contributes about 32 per cent to the country’s overall M&HCV volumes.

Over the past three years, the company’s market share in North India has improved by 6.5 per cent, supported by the establishment of 300 outlets in the region. To further strengthen its position, Ashok Leyland plans to add 50 new touchpoints in North India during FY26. All of these are expected to be operational by the fourth quarter, with a focus on trucks and buses within the 7.5 to 55 metric ton range. The company also intends to extend its reach in FY27, aiming for a workshop every 50 kilometres in North India.

Ashok Leyland remains optimistic about boosting its volumes in FY26, driven by its network expansion and new model launches in the M&HCV segment, including LNG tractor-trailers, high-horsepower tippers, and CNG buses. While volume targets are considered dynamic, the company is aiming to surpass last year’s performance.

On the supply side, the company does not foresee any significant challenges regarding rare earth magnets, as these components have limited use in internal combustion engine-powered trucks and buses. Sourcing teams are actively engaged with suppliers, and no concerns have been reported. Additionally, the ongoing Iran-Israel conflict has not had any noticeable impact on the industry. The company believes that truck operating costs are primarily influenced by diesel prices set by the Government of India, which have remained stable over the past three years despite fluctuations in crude oil prices.

News source: Money Control

Hinduja Group flagship Ashok Leyland is targeting a market share of 30 per cent in the medium and heavy commercial vehicle (M&HCV) segment in North India over the next 2–3 years. The company also plans to expand its presence in the region by establishing a workshop every 50 kilometres during the coming years.In FY25, Ashok Leyland held a market share of nearly 26 per cent in North India’s M&HCV segment, with volumes of around 33,000 units. Its market share stood at over 40 per cent in South India, above 35 per cent in West India, and close to 24 per cent in East India. Overall, industry-wide M&HCV volumes were approximately 380,000 units in FY25, of which Ashok Leyland accounted for 113,000 units, achieving a 30 per cent national market share. The M&HCV category comprises vehicles with a gross vehicle weight between 7.5 metric tons and 55 metric tons.The company’s network in the M&HCV segment has expanded significantly—from 679 outlets in FY21 to 1,051 outlets across India in FY25—supporting sales, service, and parts distribution.Ashok Leyland is focused on defending its strong market position in South and West India, while enhancing its penetration in North and East India. North India is viewed as a key market, given its status as the largest contributor to industry volumes. The region’s high demand for trucks is driven by major economic activities, including the presence of large e-commerce businesses, significant two-wheeler and car manufacturing hubs, infrastructure development such as new highways, and industrial growth, including cement plants in Rajasthan. North India contributes about 32 per cent to the country’s overall M&HCV volumes.Over the past three years, the company’s market share in North India has improved by 6.5 per cent, supported by the establishment of 300 outlets in the region. To further strengthen its position, Ashok Leyland plans to add 50 new touchpoints in North India during FY26. All of these are expected to be operational by the fourth quarter, with a focus on trucks and buses within the 7.5 to 55 metric ton range. The company also intends to extend its reach in FY27, aiming for a workshop every 50 kilometres in North India.Ashok Leyland remains optimistic about boosting its volumes in FY26, driven by its network expansion and new model launches in the M&HCV segment, including LNG tractor-trailers, high-horsepower tippers, and CNG buses. While volume targets are considered dynamic, the company is aiming to surpass last year’s performance.On the supply side, the company does not foresee any significant challenges regarding rare earth magnets, as these components have limited use in internal combustion engine-powered trucks and buses. Sourcing teams are actively engaged with suppliers, and no concerns have been reported. Additionally, the ongoing Iran-Israel conflict has not had any noticeable impact on the industry. The company believes that truck operating costs are primarily influenced by diesel prices set by the Government of India, which have remained stable over the past three years despite fluctuations in crude oil prices.News source: Money Control

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