Ashok Leyland Strengthens its Presence in Southern India with New Dealerships

Ashok Leyland, the Indian flagship of the Hinduja Group and India's second-largest commercial vehicle manufacturer, inaugurated its sixth Light Commercial Vehicle dealership in Kerala on Thursday, expanding its distribution network strategically.

The new facility, operated by channel partner Capital Trucks, is located at Vembayam, Kanyakulangara, in Thiruvananthapuram. This 3S facility (Sales, Service and Spares) features advanced tools, 10 quick service bays, and infrastructure designed to enhance customer experience in the region.

The company currently holds a 20% market share in the LCV segment nationally and commands over 40% of the Medium and Heavy Commercial Vehicle segment in southern India. The new opening marks a significant milestone for Ashok Leyland as it continues to strengthen its position in Kerala, a state that has proven to be a strategic growth market for the company.

The dealership will offer the complete range of Ashok Leyland's LCV products, including BADA DOST, DOST, SAATHI, PARTNER, and MiTR variants. "Kerala has always been a strategic growth market for us, and we are excited to strengthen our presence in this region," said Viplav Shah, Head of LCV Business at Ashok Leyland. The company has achieved 70% customer retention rate even beyond the warranty period, demonstrating strong customer satisfaction.

Moreover, the timing of the dealership launch coincides with Ashok Leyland's recent expansion into the sub-2-ton segment with the launch of SAATHI at the Bharat Mobility Global Expo in January 2025. This premium entry-level Small Commercial Vehicle features advanced LNT (Lean NOx Trap) technology and is powered by a 45 HP engine delivering 110 Nm of torque. SAATHI offers a loading area that is 24% larger than competitors with an industry-leading payload capacity of 1,120 kg, priced competitively at Rs 7.19 lakh.

The company's flagship BADA DOST range, built on an all-new robust LCV platform, includes five variants (i2, i3+, i4, i5, and i5XL) powered by an 80 HP BS6 engine. These vehicles are priced between Rs 10.45 lakh and Rs 10.85 lakh, targeting inter and intra-city applications with superior maneuverability and ground clearance.

Market Positioning

Ashok Leyland is India's second-largest manufacturer of commercial vehicles, the fourth-largest manufacturer of buses globally, and holds a 31% market share in the Medium & Heavy Commercial Vehicle (M&HCV) bus and truck segment and 20% in the LCV segment as of FY24.

The company currently operates over 5.5 lakh LCVs across India and maintains one of the largest service networks in the commercial vehicle space, with more than 1,700 exclusive outlets ensuring authorized service centers every 75 kilometers on major highways. The company's LCV network now comprises over 850 touchpoints nationwide.

The Kerala expansion is part of a broader dealership expansion strategy. Recent similar openings include new LCV dealerships in Agra, Uttar Pradesh (August 26, 2025) and Nizamabad, Telangana (April 2025), demonstrating the company's systematic approach to market penetration across key growth regions.

The new dealership will offer the complete spectrum of Ashok Leyland's LCV lineup, and all vehicles are manufactured at Ashok Leyland's facility in Hosur.

The inauguration of this dealership reinforces Ashok Leyland's commitment to expanding its market presence in southern India, where it already commands significant market share and continues to see strong growth potential in the light commercial vehicle segment.