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Business Standard
25-05-2025
- Automotive
- Business Standard
We are well positioned as long as Indian market grows: Dheeraj Hinduja
Ashok Leyland, which was sitting on a net cash surplus of ₹4,242 crore in FY25, may be looking at possible acquisitions and entry into new markets. Dheeraj Hinduja, executive chairman, talks about the commercial vehicle (CV) maker's export plans, electric vehicle (EV) business, along with the geopolitical scenario in a video interaction with Shine Jacob. Edited excerpts: Your EV arm Switch Mobility plans to shut down the UK facility at Sherburn. What's your roadmap? Looking at the way the European and UK markets are evolving, it was the right decision by the company to put extra focus on the Indian market. That does not mean we are exiting those markets. We will continue to service those markets. We will look at maintaining our sales in due course of time. The domestic market is growing well for buses. Switch is winning many tenders and has been through new product introductions as well. It will be doing it this year as well. In that respect, I believe the Indian government is giving a very good push to electric buses. It is providing support through incentives as well. We are quite comfortable and will look at this opportunity to explore new markets through new products. You had set a target of 15,000 units for exports in FY25 from around 11,853 units in FY24 and comfortably crossed that. When do you expect to touch your long-term goal of 50,000 units? Rather than focusing on the 50,000 units, which may be the end goal, what is important on an annual basis is to continue this growth. Last year, we managed to deliver what we had estimated (15,255 units). This year also, we are confident that we will be able to increase this quite well. It is not purely dependent on the markets but also on our extended product range within some of the existing markets. At the same time, we continue to explore new terrains. Every time we go into a new market, it takes two-three years to establish an ecosystem, which includes dealerships, products, and after-sales support. All the initiatives that we have taken in the last few years in growing in the African market are suddenly coming through very well. In the Gulf Cooperation Council (GCC) region also, we are well placed, and having our facility in Ras Al Khaimah ensures that our buses are actually seen as an Emirates product. People are seeing us as a local player. In many new markets that we are opening, people should feel comfortable that we are there as a local player and will continue being there to support them through our services. In my view, this is a long-term journey for Indian original equipment manufacturers (OEMs) as they continue to expand their international operations. The acceptability of Ashok Leyland and other Indian products is now improving because of the policies we are offering today. This year, we would see much better numbers in our international operations. Can we say, by 2027 you will be crossing the 25,000-mark? I always hesitate to give numbers, especially because there are so many geopolitical and international issues that are going on. If something happens in any of our key geographies, it can affect our numbers drastically. However, it is a long-term goal to continue growing our international operations. The expansion is happening much better today purely because of the products that we have. How do you see the current tariff scenario and geopolitical crisis globally impacting your raw material prices, especially steel? We are seeing certain protections being given to the steel manufacturers in the country. To the extent possible, it is an ongoing cost-reduction initiative that we are undertaking. While steel may go up, we need to see how we can balance it out in other areas. Luckily, India, being a large market, has good demand internally as well. It still contributes more than 90 per cent of our market. As long as the Indian market continues to grow, our company is well positioned. You are aggressive on liquefied natural gas (LNG) and hydrogen as well. What's your strategy with regard to this? On all alternative fuels, including hydrogen and LNG, we are moving forward with our development plan. For the customer segment and also for the government, we will make sure that as a supplier of buses and trucks, we will make all fuel types available depending on the customer's wish.
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Business Standard
25-05-2025
- Automotive
- Business Standard
As Indian market grows, our company is well positioned: Dheeraj Hinduja
Dheeraj Hinduja talks about its export ambitions, electric vehicle (EV) business, and geo-political scenario Shine Jacob Chennai Listen to This Article Ashok Leyland, which was sitting on a net cash surplus of ₹4,242 crore in FY25, may be looking at possible acquisitions and entry into new markets. Dheeraj Hinduja, executive chairman, talks about the commercial vehicle (CV) maker's export plans, electric vehicle (EV) business, along with the geopolitical scenario in a video interaction with Shine Jacob. Edited excerpts: Your EV arm Switch Mobility plans to shut down the UK facility at Sherburn. What's your roadmap? Looking at the way the European and UK markets are evolving, it was the right decision by the company to put extra focus on the Indian
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Business Standard
23-05-2025
- Automotive
- Business Standard
Ashok Leyland earmarks Rs 1,000 crore capex for FY26: CFO Balaji
Hinduja Group flagship Ashok Leyland has earmarked about Rs 1,000 crore towards capital expenditure for the current financial year, a top official said on Friday. The city-headquartered heavy commercial vehicle manufacturer with a strong financial position of Rs 4,242 crore net cash would focus on investing in products and technologies in the current financial year. "The Capital Expenditure in FY25 we incurred was close to Rs 1,000 crore. And we will incur similar kind of capex for the coming year also (FY26)," company Chief Financial Officer K M Balaji told reporters. To a query on the investments that would be made in the subsidiaries during the financial year, he said it would be decided based on the requirement. "As far as investments in FY26, we will decide based on the requirements of the group companies. As of now, the requirements are visible from our Switch Mobility (EV division) and as well as in the Hinduja Leyland Finance. These are all some of the companies where we would invest and we will decide on the quantum as we progress during the financial year," he said. Adding to his point, Ashok Leyland Managing Director and CEO Shenu Agarwal said the company reported a net debt of Rs 89 crore in the previous financial year (FY24) and now it has become net cash surplus of over Rs 4,000 crore. "This means that we can really invest a lot of this cash in the future growth of the company. We are very clear that this future growth will come from the strengths of products and technologies that we offer to the market and also customer experience we offer to customers after the sales. So, in both these fronts we have some aggressive plans." Agarwal said. Ashok Leyland Ltd reported a 33.44 per cent rise in its consolidated net profit to Rs 1,245.92 crore in the January-March quarter, riding on robust sales and record revenue. The company had posted a consolidated net profit of Rs 933.69 crore during the corresponding quarter of last financial year. Commenting on the financial performance, Ashok Leyland Ltd Chairman Dheeraj Hinduja said, "Ashok Leyland achieved its highest ever Q4 and revenue, EBITDA, and PAT. This was our fourth consecutive quarter of double digit EBITDA margin. These record performances reflect the resilience of our business and trust of our customers that they have placed in us.", he said. On the exports front, he said, the strategy of going local in overseas business complemented by new products was progressing very well. To a query about the electric vehicle division Switch Mobility, he said, it "has a healthy volume with an order book of over 1,500 buses. We are launching new models in our bus portfolio as well. So, we are looking for a breakeven this financial year and with the restructuring we have done, that (achieving break even) is very much possible." On light commercial vehicle business, Agarwal said, "As we have already always been saying that LCV you know we see huge headroom in expanding our LCV business. "Firstly, you know we are restricted to 2-4 tonnage vehicles of that segment which is 50 per cent of the overall LCV industry. So, first I think the plan is how we can expand our product portfolio to cover 80 per cent of our LCV segment. Lot of effort will go into our R&D to see how we can create an LCV winning product to get that 30 per cent market share.", he said.
Time of India
23-05-2025
- Automotive
- Time of India
Ashok Leyland earmarks Rs 1,000 cr capex for FY26: Official
Hinduja Group flagship Ashok Leyland has earmarked about Rs 1,000 crore towards capital expenditure for the current financial year, a top official said on Friday. The city-headquartered heavy commercial vehicle manufacturer with a strong financial position of Rs 4,242 crore net cash would focus on investing in products and technologies in the current financial year. "The Capital Expenditure in FY25 we incurred was close to Rs 1,000 crore. And we will incur similar kind of capex for the coming year also (FY26)," company Chief Financial Officer K M Balaji told reporters. To a query on the investments that would be made in the subsidiaries during the financial year, he said it would be decided based on the requirement. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like POROSIT TANI +355677168900 | Koha nuk ka qenë kurrë kaq elegante. Reklame nga | Enzo Attini Undo "As far as investments in FY26, we will decide based on the requirements of the group companies. As of now, the requirements are visible from our Switch Mobility (EV division) and as well as in the Hinduja Leyland Finance. These are all some of the companies where we would invest and we will decide on the quantum as we progress during the financial year," he said. Adding to his point, Ashok Leyland Managing Director and CEO Shenu Agarwal said the company reported a net debt of Rs 89 crore in the previous financial year (FY24) and now it has become net cash surplus of over Rs 4,000 crore. Live Events "This means that we can really invest a lot of this cash in the future growth of the company. We are very clear that this future growth will come from the strengths of products and technologies that we offer to the market and also customer experience we offer to customers after the sales. So, in both these fronts we have some aggressive plans." Agarwal said. Ashok Leyland Ltd reported a 33.44 per cent rise in its consolidated net profit to Rs 1,245.92 crore in the January-March quarter, riding on robust sales and record revenue. The company had posted a consolidated net profit of Rs 933.69 crore during the corresponding quarter of last financial year. Commenting on the financial performance, Ashok Leyland Ltd Chairman Dheeraj Hinduja said, "Ashok Leyland achieved its highest ever Q4 and revenue, EBITDA, and PAT. This was our fourth consecutive quarter of double digit EBITDA margin. These record performances reflect the resilience of our business and trust of our customers that they have placed in us.", he said. On the exports front, he said, the strategy of going local in overseas business complemented by new products was progressing very well. To a query about the electric vehicle division Switch Mobility, he said, it "has a healthy volume with an order book of over 1,500 buses. We are launching new models in our bus portfolio as well. So, we are looking for a breakeven this financial year and with the restructuring we have done, that (achieving break even) is very much possible." On light commercial vehicle business, Agarwal said, "As we have already always been saying that LCV you know we see huge headroom in expanding our LCV business. "Firstly, you know we are restricted to 2-4 tonnage vehicles of that segment which is 50 per cent of the overall LCV industry. So, first I think the plan is how we can expand our product portfolio to cover 80 per cent of our LCV segment. Lot of effort will go into our R&D to see how we can create an LCV winning product to get that 30 per cent market share.", he said.
Time of India
23-05-2025
- Automotive
- Time of India
Ashok Leyland's Switch Mobility eyes breakeven this fiscal
Ashok Leyland 's EV subsidiary, Switch Mobility , plans to achieve break-even in the current fiscal year after turning EBITDA-positive in FY25, said a top company official. Switch Mobility closed Q4 FY25 with a strong double-digit EBITDA margin. Ashok Leyland acquired Switch Mobility in 2020 from the UK-based Optare Plc. The EV arm currently has an order book of over 1,800 electric buses , which will support its robust business plans, said Dheeraj Hinduja, Chairman of Ashok Leyland, during the company's Q4 earnings call. Switch Mobility's product portfolio includes the EiV 12, EiV 22, and IeV 4, with manufacturing units in Chennai, Tamil Nadu, and the UK. The company aims to strengthen its position in the electric commercial vehicle market with multiple launches lined up for FY26. On Friday, Ashok Leyland, the Indian flagship of the Hinduja Group, reported its highest-ever quarterly and annual revenue, EBITDA, and profit after tax (PAT) for FY25. The company posted a revenue of ₹38,753 crore for the fiscal year, with exports registering a 29 per cent growth. The company also ended FY25 with a strong cash position, after accounting for dividends, capex, and investments in group companies. Leveraging this surplus, Ashok Leyland plans to infuse capital into Switch Mobility, Hinduja Leyland Finance, and other group entities based on evolving market needs, said Shenu Agarwal , Managing Director & CEO, Ashok Leyland. Ashok Leyland's Future Outlook The commercial vehicle giant will continue investing in alternative fuels, including LNG, hydrogen, and EVs—such as its 55-ton electric tractor-trailers. For FY26, the company has planned a capex of ₹1,000 crore, in line with the previous fiscal year. The company informed that it will use its strong cash reserves to drive growth in product innovation, advanced technologies, and enhanced customer experience. The top management remains optimistic about the current fiscal, citing favourable macroeconomic indicators such as a positive monsoon outlook, government capex push, and a recovery in freight movement. Additionally, pent-up demand in the bus segment is expected to further boost sales. Ambitious Targets Ahead Currently positioned among the world's top 20 commercial vehicle manufacturers, Ashok Leyland has set its sights on breaking into the global top 10, according to company officials. The company is also focused on expanding its footprint in the tractor-trailer and intermediate commercial vehicle (ICV) segments, which have shown strong growth. A Pan-India dealer network expansion is underway to support these efforts. To reward shareholders, the Board has approved a 1:1 bonus share issue, citing strong and consistent financial performance.
