Ashok Leyland Plans New Launches to Increase Light Truck Market Share
Ashok Leyland, the flagship company of the Hinduja Group, is set to launch six new light commercial vehicles (LCVs) within the next year as part of its strategy to expand its market share in the segment to 25% from the current 20%. The company's president of LCV, international operations, defense, and power solutions, Amandeep Singh, announced that the rollouts will occur bi-monthly starting at the end of the month. The new vehicles, variations of the existing Dost range of pickup trucks, will feature diverse payload, technology, and volume capabilities.
Ashok Leyland is targeting a short-term increase in LCV market share to 25% within the next two years, taking advantage of a shift towards higher tonnage from sub-2-tonne to 2-3.5 tonne vehicles. The LCV segment, dominated by Mahindra & Mahindra, is a key part of India's light truck market.
In the past year, the domestic light truck market experienced a slight decline in overall sales, falling from approximately 559,000 units in FY23 to around 542,000 units in FY24. Despite this, Ashok Leyland's share of the market increased from 11.74% to 12.10%, and the company reported a slight rise in sales, with 65,678 units sold compared to 65,654 in the previous year.
Market leader Mahindra & Mahindra saw its share rise by over 300 basis points to 46.32%, while Tata Motors experienced a decline in market share from 35.71% to 32.45%. Singh is optimistic about upcoming growth, citing factors such as a favorable monsoon forecast, a potential revival in rural sales, and a shift from bulk to packaged goods as likely drivers of increased LCV demand.
As part of its expansion efforts, Ashok Leyland's electric vehicle arm, Switch Mobility, recently launched an electrified version of the 3.5-tonne Bada Dost in five major cities. Plans are also underway to introduce an electric version of the brand with a lower gross vehicle weight (GVW). Furthermore, the company is considering entering the competitive ASEAN market, where Japanese brands currently dominate.
Ashok Leyland has been selling its Dost vehicles under the Phoenix brand in the Middle East, Africa, South Asia, and GCC countries. The company's focus on strategic expansion and innovation in its LCV offerings is expected to enhance its position in the market and drive future growth.
