Ashok Leyland Gears Up: Unveils Bold Expansion Plan for North and East India

Ashok Leyland, a prominent manufacturer of heavy commercial vehicles, has unveiled its expansion strategy for the North and Eastern regions of India, as confirmed by a senior executive of the company.

As part of its growth trajectory, the flagship company of the Hinduja Group is preparing to roll out its range of electric light commercial vehicles (LCVs) in the coming months.

During the first nine months of the financial year ending December 31, 2023, Ashok Leyland achieved significant milestones, including its highest turnover of Rs 27,100 crore, highest sales volume of 1,38,416 units, EBITDA of Rs. 3,014 crore, and Profit After Tax of Rs. 1,718 crore.

"We are witnessing promising progress in the North and East zones, historically weaker markets for us. There's considerable potential for further expansion. Our focus remains on bolstering our network, particularly in these regions," remarked Shenu Agarwal, the Managing Director of Ashok Leyland.

To facilitate its network expansion endeavors, Ashok Leyland has forged a partnership with the diversified conglomerate TVS Group.

"In collaboration with the TVS Group, our longstanding partner in Tamil Nadu and Kerala, we're extending our presence in the National Capital Region. We're set to inaugurate multiple new outlets in this region in the coming months," Agarwal informed analysts during a recent briefing.

The company has augmented its infrastructure with the addition of 37 authorized service centers and 44 dealers for the medium and heavy commercial vehicle segment during the initial three quarters of the year.

"At present, we boast a network comprising 399 authorized service centers and 491 dealers across the nation. Our objective is to elevate this figure to 1,000 in the foreseeable future," Agarwal affirmed.

Agarwal emphasized the strategic significance of Ashok Leyland's electric vehicle arm, Switch Mobility, in ensuring the company's future readiness. In the October-December 2023 period, Ashok Leyland allocated Rs. 662 crore of the total equity investment of Rs. 1,200 crore approved by the Board for Optare PLC, United Kingdom.

"Ashok Leyland will progressively inject the remaining equity in multiple installments over the ensuing months," Agarwal disclosed.

The robust financial standing of Ashok Leyland underpins its vision for the electrification of buses and light commercial vehicles under the Switch brand.

"I'm delighted to announce that Switch products are garnering considerable traction in the market. We're eagerly anticipating the commencement of deliveries for our inaugural batch of electric LCVs in the coming months," Agarwal concluded.

News by Rahul Yelligetti