Ashok Leyland targets 25% stake in the LCV segment : CEO Agarwal

Strategic Push Beyond 2–4 Tonne Segment to Capitalize on Urban Logistics Boom

Ashok Leyland is set to broaden its presence in the light commercial vehicle (LCV) market, aiming for a 25% market share in the sub-3.5 tonne segment. Managing Director and CEO Shenu Agarwal announced this officially on Thursday. The company plans to widen its product portfolio significantly to capture a larger slice of the growing urban logistics sector.

Agarwal highlighted the company's current focus and future plans, saying, “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 its reach to nearly 80% of the LCV segment by entering weight categories below 2 tonnes, directly challenging competitors.

Key Growth Plans and Market Share Ambitions

Ashok Leyland has already made notable progress within the 2–4 tonne category, where it operates popular models such as Dost and Bada Dost. According to Agarwal, “Our market share is around 20% now, up from about 15–16% four to five years ago.” The company has established itself as the second-largest player in this segment, fueling confidence to push for a 25% share in the medium term.

To achieve this, significant investment in research and development will be directed toward designing competitive products in the smaller weight segments. “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 added.

Structural Growth Opportunity

Agarwal pointed out that the LCV segment in India presents a substantial growth opportunity compared to medium and heavy commercial vehicles (MHCV). “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 said.

The company expects accelerating demand driven by expanding last-mile delivery, e-commerce, and quick commerce sectors to boost LCV sales further. Agarwal remarked, “So the demand from the LCV segment should show up strongly in the coming years.”

This is especially targeted at high-growth urban and intercity logistics markets, positioning the company for sustained success in the evolving commercial vehicle landscape.