No impact on CV exports due to the West Asia tensions: Ashok Leyland

Business Standard

24-06-2025

Ashok Leyland does not foresee any impact from recent geopolitical tensions in West Asia on its commercial vehicle (CV) exports, with shipments continuing as usual to key markets in the region, Sanjeev Kumar, president of Medium & Heavy Commercial Vehicles (M&HCV) at Ashok Leyland, said on Tuesday.
'As of now, no. There has been no impact on exports. They are going on as usual,' Kumar told Business Standard in an interview. The company has a 'fairly strong presence' in the Gulf Cooperation Council (GCC) countries and also exports to Africa, he added.
In FY25, around 8 per cent of Ashok Leyland's total production was exported, while the remaining 92 per cent was sold in the domestic market. The company exported 15,255 units during the year, marking a robust 28.7 per cent year-on-year growth.
Kumar also downplayed the effect of rising crude oil prices—linked to tensions in the West Asian region—on the domestic CV industry. He noted that diesel prices have remained stable for the past two to three years, offering predictability for fleet operators.
'What the industry wants is constant pricing. How does it help the CV operator? He knows what his expenses will be and, on that basis, engages with customers. This frequent up and down in crude prices will not have an impact. These are very temporary, event-driven issues,' he said.
'Three years back, when diesel prices were set, crude prices were at a higher level. So, I don't think we can expect anything negative in terms of crude right now,' he added, while acknowledging that sustained high crude prices could push up input costs like rubber.
Kumar was speaking on the sidelines of a company event in New Delhi, where Ashok Leyland outlined plans to strengthen its footprint in northern India. The company is targeting an increase in its M&HCV market share in the region from 26 per cent currently to 30 per cent over the next two to three years.
Ashok Leyland, the flagship company of the Hinduja Group, currently operates nearly 300 channel outlets in northern India and plans to add over 50 touchpoints this year. 'Northern India is the largest market for the commercial vehicle sector and contributes to more than a third of the total industry volume,' Kumar said during the event.
The company has gained nearly 6.5 percentage points of market share in the region over the past three years, driven by various factors including cost efficiency, he said.
Looking ahead, Ashok Leyland plans to continue investing in new technologies and product development while capitalising on infrastructure growth and freight mobility demands in the region.