In 5 years, we want to cross 50,000 export mark: Ashok Leyland MD & CEO

Agarwal talks about the new product, alternate fuels plans, and export roadmap

Hinduja Group flagship company Ashok Leyland, the second-largest commercial vehicle (CV) maker in India and the fourth-largest in the world, on Friday marked its entry into the entry-level light commercial vehicle (LCV) segment through Saathi. The company's Managing Director and Chief Executive Officer Shenu Agarwal talks to Shine Jacob about the new product, alternative fuel plans, and export road map. Edited excerpts:

 

What are the key highlights of Saathi?

 

We have three products, including Saathi, displayed for the first time, marking our entry into the entry-level LCV segment. We are working on some more products in this segment. We are giving a little bit more payload than a normal sub-two-tonne vehicle.

 

When we looked at this market very closely, it was very evident that all the products in the sub-two-tonne category now have made a lot of compromises to make them really affordable for entry-level customers. We are giving these customers something very different, with more cabin space, better payload, and additional volume. This market for diesel starts at around Rs 6.3 lakh and goes up to Rs 7 lakh, and we have our usual price set at Rs 6.5 lakh, so we are slightly on the lower side with a superior product.

 

After a poor show in calendar year (CY) 2024, what is your outlook for 2025 for the industry? Will it be back to pre-Covid levels in terms of volume?

 

I don't think that peak in CV sales is going to happen in FY26, but it will happen in FY27, as the impact of all government measures will reflect by that time. We are not far away from the pre-Covid peak and we will have to grow by only 8-10 per cent a year to achieve that.

 

If you look at the factors behind FY25 lower sales, these were all temporary factors. We had elections, and before that, analysts were saying that the market may take a 15 per cent hit in commercial vehicles in H1. We were pleasantly surprised that the market grew, instead of a degrowth.

 

However, after elections, we were hoping for the government to pump a lot of money into infrastructure projects. That did not happen because of many reasons, like not having an overwhelming majority and elections in states. Since mid-November, we are seeing a lot of traction coming in.

 

We are seeing that the sentiment is turning positive. The fourth quarter will be much better, and at least we will not see any degrowth. If that happens, it will be a good base for further growth in FY26.

 

How are you looking at the export strategy going ahead?

 

Our export growth rates are the best in the industry. This year, we are hoping to export around 15,000 units, which will be quite a growth from last year. Our near-term growth for exports is to get to 25,000 annually, and in three-to-five years, we want it to cross the 50,000 mark. We are strong in GCC, SAARC, and Africa, and the next market we want to focus on is Asean, with a very good product range. We are also trying to have the right partnerships for solid distribution.

 

What will be your strategy in electric vehicles (EVs) and alternative fuels going ahead?

 

We will see that Ashok Leyland is the first to the market in electric, hydrogen, or LNG. Most of the launches going forward will be in the cleaner fuels space, and it will be technology-led products.

 

In trucks, we are the number two player in India, and in buses, we are the number one. We are always looking for any change that is going to happen in the industry. With change to cleaner fuels, we want to take up the number one position. Because of this, we have been investing in all kinds of alternative fuels for a long time. We have a solid range of electric buses and trucks too. We are displaying a tractor-trailer for port terminal applications.