Ashok Leyland targets sales of 500 electric, LNG trucks this year

Ashok Leyland, India's second largest CV maker, is seeing an increase in demand for electric and LNG trucks in last- and middle-mile transportation from e-commerce operators such as Amazon and Flipkart, as well as large logistics companies looking to meet their ESG goals.

According to company officials, the electric and LNG truck market in India is expected to reach 4,000 to 5,000 units by the end of the current financial year. Ashok Leyland expects to sell about 500 electric trucks as well as those running on other alternative fuels such as LNG this year.

"The single most significant challenge in electric trucks is to maintain a stable total cost of ownership,” said Sanjeev Kumar, President, MHCV, Ashok Leyland, speaking on the sidelines of the two-day 'Mini Expo' in Mumbai – held to showcase the company’s latest innovations in Medium and Heavy Commercial Vehicles (MHCVs).

“Companies such as Amazon and Flipkart are driving demand…to meet their ESG goals. So this year, we will also see zero-emission technologies making a small but steady contribution to our growing space in this category."
Currently, the main challenge in the electric truck segment is that an electric truck costs nearly four times as much as a diesel truck, which has an impact on overall operating costs. 

For example, Ashok Leyland's AVTR 55T electric tractor EV, which has a 300kWh LFP battery LFP and a range of 185 kilometres, is priced at Rs 1.39 crore, while a comparable diesel variant costs Rs 45 lakh.

Similarly, Ashok Leyland Boss 14T EV has an LFP battery and a range of 230 km, and costs Rs 1.01 crore. But its diesel variant costs only Rs 25 lakh.

Kumar, who shared customer requirements for the category, stated that buyers are looking to meet their ESG compliance. Meanwhile, firms that require such trucks are also investing in charging infrastructure, with authorised charge point operators facilitating the installation of these chargers.

"We are seeing some interest in electric trucks because our customers are aware that Scania, Ashok Leyland is one of the few to offer a product that is modular and meets global standards, and this is driving good inquiries," he said.

In terms of the challenges that India's MHCV market faces, growth dropped to 0.7% in FY24 from 30.7% in FY22 and 28.7% in FY23.

However, Sharma remains optimistic about the category's future.
"We expected it to be flattish last year. However, in the first quarter, the CV industry expanded by 10%, exceeding our expectations. With the elections completed, a new government has been formed and tenders are being issued. Business activity has resumed after a pause."

Sharma pointed out that the easing of commodity prices is helping the CV industry control costs. "We are hopeful that lowering commodity costs will also assist OEMs in passing on cost savings to customers, which will help to stimulate demand for EVs and other conventional fuel products with a pricing advantage."