25 Jun 2025
Strengthening Northern Presence to Power Future Growth
Ashok Leyland, the Chennai-based flagship of the Hinduja Group, is aiming to capture a 30% market share in the Medium and Heavy Commercial Vehicle (M&HCV) segment in North India by 2028. The company currently holds a 26% market share in this strategically significant region.
According to Sanjeev Kumar, President, M&HCV, Ashok Leyland, the target is well within reach over the next two to three years. The company is banking on the region’s strong industry volume and increasing demand for commercial vehicles, driven by infrastructure expansion and economic development.
Key Highlights of Ashok Leyland’s Northern Strategy
The company is aligning its regional expansion with industry trends to solidify its leadership in the northern M&HCV market.
Current Market Position
Ashok Leyland presently holds a 26% market share in North India, with plans to grow this to 30% by 2028.
Significance of North India
The northern region contributes nearly 32% of the total industry volume (TIV), making it the largest and most critical market for the company. This region includes key states up to Uttar Pradesh and Rajasthan.
Strategic Expansion Plans
To boost its presence, the company is planning to add over 50 new dealerships and service outlets in North India in 2025. This will expand Ashok Leyland’s network beyond its current 300 touchpoints in the region.
Regional Contributions to Total Volume
Ashok Leyland’s overall vehicle contribution across regions currently stands at:
- North: ~30% (target)
- South: ~21–22%
- West: ~21–22%
- East: ~15%
- Central: ~8–9%
Kumar emphasized that if Ashok Leyland produces one lakh vehicles annually, the north would contribute nearly 30,000 units — a crucial part of the company’s future growth.
Financial Performance and Growth Momentum
Ashok Leyland’s growth in the north has been steady. Over the past three years, the company has increased its market share in North India by 6.5%.
In the March 2025 quarter, the company recorded a 38.4% year-on-year increase in net profit, reaching Rs 1,246 crore, aided by a tax credit of Rs 173 crore.
The company also closed the FY25 financial year with a net cash position of Rs 4,242 crore, a significant improvement from the net debt of Rs 89 crore in FY24. Notably, Rs 3,284 crore of the total cash was generated in the fourth quarter alone.
Statements from Leadership
Sanjeev Kumar, President of M&HCV, Ashok Leyland, shared, “The idea is, at least in the next two to three years, we should definitely hit 30%. And we feel confident also.”
He added, “North continues to be the biggest contributor. Around 32% of the total industry volume comes from the north, and that is where our focus is.”
Future Outlook
Ashok Leyland’s sharpened focus on North India aligns with the region’s booming demand for transport solutions, driven by economic growth, infrastructure projects, and fleet modernization. With an expanded retail and service footprint, the company aims to strengthen customer engagement and drive long-term loyalty.
As the M&HCV industry in India evolves, Ashok Leyland’s strategic expansion and regional focus are expected to play a pivotal role in enhancing its national leadership in the commercial vehicle space.
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