Ashok Leyland targets 25% market share in LCVs

The company's top leadership, including Chairman Dheeraj Hinduja, announced plans to increase its LCV market share to 25% in the mid-term, up from its current share of 20.4%.

By Shahkar Abidi and Kiran Murali

24 May 2024

4818 Views

Ashok Leyland targets 25% market share in LCVs

Ashok Leyland, one of India's leading commercial vehicle manufacturers, is setting its sights on garnering a bigger slice of India's light commercial vehicle (LCV) market. The company's top leadership, including Chairman Dheeraj Hinduja, announced plans to increase its LCV market share to 25% in the medium-term, up from its current share of 20.4%.

During a post-earnings call on Friday, Hinduja revealed the company's strategy to achieve this target. Ashok Leyland plans to launch 5–6 new LCV models throughout the year, specifically focusing on the 2-to-3.5-tonne segment. These launches will address existing market gaps.

He added that Ashok Leyland LCV volume remained stable despite the industry witnessing a reduction in volumes during the previous fiscal.

The announcement reflects Ashok Leyland's growing confidence in the LCV segment. While acknowledging the company's late entry compared to competitors, Hinduja highlighted the impressive progress made over the past decade.

Countering the perception of lower margins in LCVs compared to Ashok Leyland's traditional strength in heavy commercial vehicles (HCVs), Chairman Dheeraj Hinduja expressed confidence in achieving similar margins across both segments. "We can get the same type of margins even in the LCVs," he asserted.