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Ashok Leyland, a leading truck and bus maker in the country, expects its vehicle exports to stage a strong rebound and the company sees the opportunity to record a strong double-digit growth in exports in this fiscal.
- Also read:Ashok Leyland sales surge 12% in May
While overall commercial vehicle exports from India fell 16 per cent at 65,816 units, Ashok Leyland reported a 5 per cent increase in CV exports at 11,853 units despite subdued market conditions in SAARC and in some parts of Africa. The company attributes this growth to its strategy of local market presence, focused product development for international markets, and strong distribution relationships in key markets.
With some key export markets showing signs of recovery, Ashok Leyland expects significant volume expansion this year.
“This year, we’re seeing some revival in Sri Lanka, Nepal and Bangladesh. So, the traditional markets should be stronger. Our products are gaining more acceptance in the GCC region, which will drive volume growth. Additionally, over the past 2-3 years, we’ve expanded our network in Africa and entered new markets. So, I believe exports should see a growth of 20-25 per cent this year,” Dheeraj Hinduja, Chairman of Ashok Leyland, in an interview with businessline.
Domestic market
While boosting exports, the company remains focused on increasing its domestic market share in the medium and heavy commercial vehicle sector to 35 per cent (up from the current 31 per cent) and its light commercial vehicle market share to 25 per cent (up from 20 per cent) in the medium term.
Currently, Ashok Leyland addresses only half of the LCV market in India but plans to expand its coverage to 70-80 per cent in the next few years through a series of new product launches. “The LCV segment presents a huge potential for us to grow our CV volumes in the future,” added Hinduja.
However, domestic LCV wholesale volumes are expected to decline by 5-8 per cent in FY2025 due to factors such as a high-base effect, a sustained slowdown in e-commerce, and competition from electric three-wheelers, according to rating agency ICRA.
The LCV (Goods) segment reported wholesale dispatches of 142,946 units in Q4 FY2024, marking a marginal 3 per cent year-on-year decline due to the high base effect. The segment saw a 3 per cent year-on-year volume decline in FY2024 compared to the previous fiscal year, it added.
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