Ashok Leyland Projects Robust Export Growth in FY25 Amid Market Revival and Strategic Expansions

Ashok Leyland, a leading truck and bus manufacturer in India, expects a significant rebound in vehicle exports, projecting strong double-digit growth for this fiscal year.

Despite an overall 16% decline in commercial vehicle (CV) exports from India, totaling 65,816 units, Ashok Leyland reported a 5% increase, reaching 11,853 units. This growth occurred despite subdued market conditions in the SAARC region and parts of Africa. The company attributes its success to a strategy focused on local market presence, targeted product development for international markets, and robust distribution relationships in key regions.

With signs of recovery in key export markets, Ashok Leyland anticipates substantial volume expansion this year.

“We’re seeing a revival in Sri Lanka, Nepal, and Bangladesh. Our products are gaining more acceptance in the GCC region, which will drive volume growth. Additionally, we’ve expanded our network in Africa and entered new markets over the past 2-3 years. I believe exports should grow by 20-25% this year,” stated Dheeraj Hinduja, Chairman of Ashok Leyland, in an interview with businessline.

While boosting exports, Ashok Leyland also aims to increase its domestic market share in the medium and heavy commercial vehicle sector to 35%, up from the current 31%, and in the light commercial vehicle (LCV) market to 25%, up from 20%, in the medium term.

Currently, Ashok Leyland addresses only half of the LCV market in India but plans to expand its coverage to 70-80% in the coming years through new product launches. “The LCV segment presents a huge potential for us to grow our CV volumes in the future,” added Hinduja.

However, domestic LCV wholesale volumes are expected to decline by 5-8% in FY2025 due to factors such as a high base effect, a sustained slowdown in e-commerce, and competition from electric three-wheelers, according to rating agency ICRA.

The LCV (Goods) segment reported wholesale dispatches of 142,946 units in Q4 FY2024, marking a marginal 3% year-on-year decline due to the high base effect. The segment saw a 3% year-on-year volume decline in FY2024 compared to the previous fiscal year.

HBL