Ashok Leyland Targets Deeper LCV Play, Eyes 25% Market Share in Sub-3.5 Tonne Segment: CEO Agarwal

Ashok Leyland is gearing up for a significant expansion in the light commercial vehicle (LCV) segment, Managing Director & CEO Shenu Agarwal said on Thursday. The company aims to broaden its product portfolio and boost its market share.

“We see a huge headroom in expanding our LCV business,” Agarwal said during a post-results briefing. “Currently, we are restricted to the 2–4 tonne segment, which accounts for only 50% of the overall LCV market.”

The company plans to expand coverage to nearly 80% of the LCV segment, requiring it to step into weight classes beyond its existing product portfolio. The company had earlier announced its plans to enter the sub-2-tonne segment and challenge the Tata Ace and Mahindra’s Jeeto, which cater to a sizeable market.

“A lot of effort will go into our LCV R&D to see how we can create winning products in this segment to capture that extra 30% market,” Agarwal noted.

The company has made visible gains within the 2–4 tonne category, where Ashok Leyland already operates through products like Dost and Bada Dost. “Our market share is around 20% now, up from about 15–16% four to five years ago,” Agarwal said. “We’ve also become the number two player in that market, which gives us confidence to aim for 25% market share in the medium term.”

Agarwal also pointed to a structural growth opportunity in the Indian LCV space. “There is a belief at Ashok Leyland that the LCV market should grow faster than MHCV, because worldwide, LCV volumes in most major economies are at least 2.5 to 3 times that of MHCV. In India, that is not the case yet,” he explained.

As last-mile mobility, e-commerce, and especially quick commerce continue to expand, Agarwal expects LCV demand to accelerate. “So the demand from the LCV segment should show up strongly in the coming years,” he said.

Ashok Leyland’s renewed focus on LCVs comes amid broader strategic efforts to grow profitably through product expansion, alternate fuel integration, and enhanced customer service—especially in high-growth urban and intercity logistics segments.