Ashok Leyland charts plans to get future ready

Truck and bus maker Ashok Leyland posts strong business performance and has plans in place to increase market share in the near term, profitability in the longer term

- Ketan Thakkar and Shahkar Abidi.

It's exciting times for Ashok Leyland, India’s second largest medium and heavy truck maker. Having scaled a new peak in FY23, the company has defined a long term road map that envisages all round growth in volumes, market share, product portfolio, technology without compromising on the bottom line.

In an investor meet held in June, the company spelled out its target of attaining 35 percent market share in the intermediate, medium and heavy commercial vehicles ranging from 11 tonnes to 55 tonnes. This will put the company on path to its eventual goals of breaking into the top 10 global commercial vehicle makers. Expanding footprint globally is also a core pillar in this endeavour to be a top global player.

This growth in market share has to be achieved with midteen EBIDTA margins, the company told investors. It will aim to have a tight control over discounts so that structural discipline is maintained across business cycles.

To expand its volumes further, the company also announced its intention to participate in the sub-2.0 tonne segment, thereby opening up the possibility of participating in the 35 percent of the total Indian commercial vehicle market.

Along with the product portfolio expansion, a range of new energy vehicles right from CNG, LNG, Hydrogen-ICE, Hydrogen Fuel Cell, EVs are on the drawing board to help the company stay competitive as the economy accelerates its shift towards lower carbon emission technologies.

At the investor presentation, Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland, outlined six future objectives.