Ashok Leyland Targets ASEAN As Next Export Growth Hub 

Ashok Leyland is targeting ASEAN as its next export growth hub as the company looks to scale overseas volumes to around 25,000 units over the medium term through deeper localisation, partnerships and ecosystem-led expansion.

Speaking during a post-earnings media call, Managing Director and CEO Shenu Agarwal said after building scale in GCC, Africa and SAARC markets, the company is now shifting focus towards ASEAN.

“Our next home market that we want to target is ASEAN,” Agarwal said. “We already have some initial successes in terms of setting up some distribution channels.”

Ashok Leyland recently signed a memorandum of understanding with Indonesian state-owned defence and mobility company PT Pindad for cooperation in defence and electric mobility. Agarwal said the partnership could help the company strengthen its ASEAN presence across both commercial vehicles and electric mobility.

According to Agarwal, Ashok Leyland’s export strategy differs from traditional vehicle exports because the company focuses on creating “home markets” with local manufacturing, distribution, service and spare-part ecosystems.

The company currently exports commercial vehicles to more than 40 countries and has been steadily increasing overseas volumes over the past few years. Indian commercial vehicle makers are increasingly looking at exports to diversify revenue streams amid cyclical domestic demand patterns.

Agarwal said Ashok Leyland builds long-term local operations rather than relying purely on vehicle shipments from India. “We don't export unless we create the whole ecosystem in any market we want to enter,” he said.

The company already operates a local assembly facility in Ras Al Khaimah in the UAE and is setting up a new plant in Saudi Arabia as part of its GCC expansion strategy.

“We have very strong distribution partnerships which go back several decades. We have parts warehouses, we have service teams for 24/7 response,” Agarwal said.

Chairman Dheeraj Hinduja said the company’s export volumes are expected to grow significantly over the next three to five years, though India would remain Ashok Leyland’s largest market. “We are progressing well on exports volume with a target of 25,000 in medium term,” Hinduja said.

Ashok Leyland’s export business continued to gain momentum in FY26, with total exports rising 13% year-on-year to 18,082 units compared with 15,255 units in FY25. The company’s total commercial vehicle sales, including exports, rose 13% to 2,20,437 units during the fiscal, supported by stronger demand from GCC markets, Africa and SAARC regions.