We are well positioned as long as Indian market grows: Dheeraj Hinduja

Dheeraj Hinduja talks about its export ambitions, electric vehicle (EV) business, and geo-political scenario

Ashok Leyland, which was sitting on a net cash surplus of ₹4,242 crore in FY25, may be looking at possible acquisitions and entry into new markets. Dheeraj Hinduja, executive chairman, talks about the commercial vehicle (CV) maker’s export plans, electric vehicle (EV) business, along with the geopolitical scenario in a video interaction with Shine Jacob. Edited excerpts:

 

Your EV arm Switch Mobility plans to shut down the UK facility at Sherburn. What’s your roadmap?

 

Looking at the way the European and UK markets are evolving, it was the right decision by the company to put extra focus on the Indian market. That does not mean we are exiting those markets. We will continue to service those markets. We will look at maintaining our sales in due course of time. The domestic market is growing well for buses. Switch is winning many tenders and has been through new product introductions as well. It will be doing it this year as well. In that respect, I believe the Indian government is giving a very good push to electric buses. It is providing support through incentives as well. We are quite comfortable and will look at this opportunity to explore new markets through new products.

 

You had set a target of 15,000 units for exports in FY25 from around 11,853 units in FY24 and comfortably crossed that. When do you expect to touch your long-term goal of 50,000 units?

 

Rather than focusing on the 50,000 units, which may be the end goal, what is important on an annual basis is to continue this growth. Last year, we managed to deliver what we had estimated (15,255 units). This year also, we are confident that we will be able to increase this quite well. It is not purely dependent on the markets but also on our extended product range within some of the existing markets. At the same time, we continue to explore new terrains. Every time we go into a new market, it takes two-three years to establish an ecosystem, which includes dealerships, products, and after-sales support.

 

All the initiatives that we have taken in the last few years in growing in the African market are suddenly coming through very well. In the Gulf Cooperation Council (GCC) region also, we are well placed, and having our facility in Ras Al Khaimah ensures that our buses are actually seen as an Emirates product. People are seeing us as a local player. In many new markets that we are opening, people should feel comfortable that we are there as a local player and will continue being there to support them through our services. In my view, this is a long-term journey for Indian original equipment manufacturers (OEMs) as they continue to expand their international operations. The acceptability of Ashok Leyland and other Indian products is now improving because of the policies we are offering today. This year, we would see much better numbers in our international operations. 

 

Can we say, by 2027 you will be crossing the 25,000-mark?

 

I always hesitate to give numbers, especially because there are so many geopolitical and international issues that are going on. If something happens in any of our key geographies, it can affect our numbers drastically. However, it is a long-term goal to continue growing our international operations. The expansion is happening much better today purely because of the products that we have.

 

How do you see the current tariff scenario and geopolitical crisis globally impacting your raw material prices, especially steel?

 

We are seeing certain protections being given to the steel manufacturers in the country. To the extent possible, it is an ongoing cost-reduction initiative that we are undertaking. While steel may go up, we need to see how we can balance it out in other areas. Luckily, India, being a large market, has good demand internally as well. It still contributes more than 90 per cent of our market. As long as the Indian market continues to grow, our company is well positioned.

 

You are aggressive on liquefied natural gas (LNG) and hydrogen as well. What’s your strategy with regard to this?

 

On all alternative fuels, including hydrogen and LNG, we are moving forward with our development plan. For the customer segment and also for the government, we will make sure that as a supplier of buses and trucks, we will make all fuel types available depending on the customer's wish.

 

How are you seeing demand in the defence sector?

 

We are expanding our defence vehicle portfolio. We are winning many new tenders. Last financial year, we had good sales, and during FY26, we are going to do much better. Ashok Leyland has supplied around 75,000 Stallion vehicles to the defence sector. If anything comes up for replacement, we will be happy to serve the nation.