Ashok Leyland plans to enhance market share, footprint in North India

Ashok Leyland currently enjoys a market share of almost 26% in the M&HCV segment in North India.

Hinduja Group flagship Ashok Leyland is aiming to reach a market share of 30% in the medium and heavy commercial vehicle (M&HCV) segment in North India, while expanding its footprint across the region with a workshop every 50 kilometres over the next few years, according to a senior company official.

With volumes of around 33,000 units, Ashok Leyland had a market share of close to 26% in the M&HCV segment in North India in FY25. The company's market share is more than 40% in South India, over 35% in West India and nearly 24% in East India, in the M&HCV space.

The industry-wide M&HCV volumes stood at nearly 380,000 units in FY25, with Ashok Leyland having a market share of 30% at 113,000 units. The M&HCV segment includes models with a gross vehicle weight in the range of 7.5 metric tons to 55 metric tons.

The company's footprint in the M&HCV space grew from 679 outlets across the country in FY21 to 1,051 outlets in FY25. These outlets cater to sales, service and parts distribution.

During an interaction with Moneycontrol, Ashok Leyland M&HCV President Sanjeev Kumar said: "We have to defend the South and the West. We have to penetrate the North and the East." The company leads the M&HCV segment in South India in terms of market share.

"North India is the biggest contributor to the overall industry in terms of volumes. Major e-commerce businesses originate from the North, you have the highest contribution from the two-wheeler industry, and cars are also manufactured here. States like Uttar Pradesh are going through a massive transformation. New highways are being constructed. Rajasthan has seen many cement plants. Economic activity is very high, leading to a higher demand for trucks," he said.

North India contributes almost 32% to the overall M&HCV volumes in the country.

"At present, we have created 300 outlets, and it has helped us. Our market share improvement in the last three years has been 6.5%. The overall idea is to reach 30% market share in North India in the next 2-3 years," Kumar observed.

Ashok Leyland will add 50 new touchpoints in North India in FY26.

"Every quarter, we will have some touchpoints. And by Q4, all 50 will be operational, Kumar said, adding that the 50 touchpoints are specifically going to focus on trucks and buses in the range of 7.5 metric tons to 55 metric tons.

The company will expand its reach even further in FY27 in North India with a workshop every 50 kilometres. "This is our ultimate dream. Probably, one more year of expansion and we will reach there," Kumar observed.

Amid network expansion and new model launches, including LNG tractor-trailers, high-horsepower tippers and CNG buses, planned in the M&HCV segment for FY26, Ashok Leyland is also upbeat about improving its volumes.

"Volume targets are always dynamic. We are trying to cross what we did last year," he said.

The company is also not concerned about the supply-side challenges related to rare earth magnets since their usage is limited in internal combustion engine (ICE)-powered trucks and buses. "Our sourcing teams are in touch with our suppliers, and there are no red flags," Kumar observed.

He also pointed to the fact that there is no visible impact of the Iran-Israel conflict on the industry as of now.

"The operating cost of a trucker is governed by the diesel prices, which the government of India announces. In the last three years, we have seen that the prices have remained constant, irrespective of any movement in crude oil prices. There is no impact," he said.