Ashok Leyland eyes northern push, projects single-digit M&HCV industry growth

Time of India

5 hours ago

New Delhi:
Commercial vehicle manufacturer
Ashok Leyland
aims to deepen its market penetration in North India, followed by the East over the next 2–3 years, while continuing to defend its hold in the South and West.
Currently, about 30–32 per cent of total industry volumes (TIV) comes from the North, where Ashok Leyland holds a 25 per cent market share. 'We are aiming to raise the North's contribution to 30 per cent by improving expansion in the region. When I talk about the North, I am referring to all the states up to Uttar Pradesh and Rajasthan,' Sanjeev Kumar, President of M&HCV, Ashok Leyland, said.
The Chennai-based company's plan is to add over 50 touchpoints in the North this year, expanding beyond its current 291 channel outlets across the region.
While South and West India contribute around 21–22 per cent each to the overall CV industry, the East stands at about 15 per cent and central India at 8–9 per cent.
The automaker has ramped up capacity with a newly inaugurated bus body plant in Vijayawada and a chassis and bus facility in Lucknow, which is set to become operational by October.
The company also operates two existing northern plants-- one in Alwar for buses and trucks, and an integrated facility in Pantnagar. In the south, it runs a foundry and two plants in Ennore for buses, trucks, and exports; a gear train facility in Bhandara; a bus body unit at GTVS-Trichy; and three Hosur plants (I, II, III) catering to a wide product range.
Industry growth in FY26
Kumar noted that the CV industry typically follows a three-year growth cycle before entering a slowdown. This being the fourth consecutive year of growth, it should expand, albeit at a single-digit rate.
According to him, core sectors such as e-commerce, government capex, and agriculture are performing well, giving confidence in sustaining "at least a single-digit" growth. Last year, the industry recorded a decline of 3 per cent. On the bus front, demand remains strong, led by robust order inflows from State Transport Undertakings (STUs) across India. Additionally, the school and staff transportation segments continue to show steady demand.
However, he pointed out that while the sector is navigating several structural challenges. The government's efforts to enhance logistics efficiency such as dedicated freight corridors between key regions, are boosting rail transport, leading to a short-term shift from road to rail cargo. Plans to expand inland waterway usage are also underway to cut costs and transit times.
Simultaneously, demand is shifting toward higher-tonnage trucks, as fleet operators aim to move more goods with fewer vehicles which is also impacting overall sales volume.
According to him, a key positive for the CV sector is the stability in diesel prices over the past 2–3 years. This consistency has enabled fleet operators to plan finances more effectively, providing cost predictability amid shifting industry dynamics and ongoing logistical reforms.
Ashok Leyland currently has an order book of nearly 4,000 buses from STUs awaiting execution.