Ashok Leyland sees single-digit growth in medium, heavy vehicle segment

Industry growth is expected to be driven by the government investment in infrastructure and tailwinds such as the good performance of core industries, Sanjeev Kumar, President - M&HCV said

The medium and heavy commercial vehicles segment in India is expected to grow in the single digit this fiscal, recovering from a decline of 3 per cent in FY25, a top official of Ashok Leyland said on Tuesday.

The Chennai-based firm is planning to grow ahead of the industry this year and is focusing on expanding its presence in North India, the largest market for commercial vehicles (CVs), Sanjeev Kumar, President - M&HCV at Ashok Leyland Ltd, told reporters here.

"When you look at last year, the industry volume came down by 3 per cent. Our understanding is that this is the fourth year running.

"If you look at the CV industry, generally it stays good for three years, and then itgoes through a downtrend. So we expect the industry to grow, at least in single digit," he said when asked about the industry outlook.

The industry growth is expected to be driven by the government investment in infrastructure and tailwinds such as the good performance of core industries, Kumar said.

On the company's growth prospects, he said every original equipment manufacturer (OEM) tries to outpace the total industry growth, and "same is the case for Ashok Leyland and we want to increase our market share".

Commenting on the significance of the North Indian market, he said, it is the largest market for the CV sector and contributes to more than a third of the total industry volume.

"We want the North (market) contribution to go at least 30 per cent. Right now, its contribution is a bit low...," Kumar added.

Further, he said, "We have gained nearly 6.5 per cent market share in the last three years...We remain dedicated to strengthening our presence in Northern India."  As part of its expansion in the said market, Ashok Leyland plans to add more than 50 touchpoints this year.

The company operates almost 300 channel outlets across the region.