Ashok Leyland crosses key market-share hurdle, eyes faster export growth

Ashok Leyland has finally broken through a long-standing market-share barrier in the medium and heavy commercial vehicle (MHCV) segment, a milestone that the company had struggled to cross for several quarters. Managing Director and CEO Shenu Agarwal said the share has now moved beyond the 29.5–30% range to 31% in the first half of the year.“We have achieved 31% and therefore now we should try and touch 32% and beyond,” he added.

Ashok Leyland is also stepping up its focus on export growth. Agarwal said the company remains confident of reaching 25,000 export units within the next two to three years. “Three years ago our volume was 8,000, and we said in the medium run, we want to treble that volume to 25,000,” he said. The company delivered more than 15,000 units last year and expects to close this year at around 18,000. “If this year we do 18,000 units, we will reach 25,000 units in two to three years.”

The bus segment continues to be a key growth area. Ashok Leyland leads the overall bus market with about 39% share, while its position in intermediate commercial vehicle (ICV) buses has improved sharply — from 15% to over 25%. Agarwal said the aim is to reach 40% share in ICV buses, which account for nearly two-thirds of total industry volume.Diversification is helping reduce reliance on the domestic truck market. Agarwal said the non-truck and non-domestic portfolio now contributes about 50% of total revenue, compared to 35–40% earlier, giving the business a more balanced structure.

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Agarwal expects the second half of the financial year to be stronger. He pointed to 7% MHCV industry growth in October versus 0–2% in the first half, and a 15% rise in light commercial vehicle (LCV) sales after goods and services tax (GST) rationalisation. “I think this is a moment when that trigger can potentially happen when customers can come out and start purchasing new trucks and buses,” he said. “If the demand for freight increases, irrespective of the price, people will go and buy more trucks to fulfil that demand.”

Ashok Leyland, one of India’s largest commercial vehicle manufacturers, has a current market capitalisation of ₹87,637.91 crore. Its stock has risen over 36% in the past year.