No impact on CV exports due to the West Asia tensions: Ashok Leyland

Ashok Leyland says CV exports remain unaffected by West Asia tensions and aims to raise market share in northern India to 30 per cent in two to three years

Ashok Leyland does not see any impact of the recent geopolitical tensions in West Asia on commercial vehicle (CV) exports, and shipments to key markets in the region are continuing as usual, said Sanjeev Kumar, president of medium & heavy commercial vehicles (M&HCV) of the company on Tuesday.

 

“As of now, there has been no impact on exports. They are going on as usual,” Kumar told Business Standard.

 

The company has a “fairly strong presence” in Gulf Cooperation Council (GCC) countries and in Africa, he added.

 

In FY25, about 8 per cent of Ashok Leyland’s total production was exported, while the remaining 92 per cent was sold in the domestic market. The company exported 15,255 units during the financial year, marking a robust 28.7 per cent year-on-year (Y-o-Y) growth.

 

 

Kumar also downplayed the effect of rising crude oil prices — linked to tensions in West Asia — on the domestic CV industry.

 

He said that diesel prices have remained stable for the last two to three years, which has provided predictability for fleet operators.

 

“What the industry wants is constant pricing. How does it help the CV operator? He knows what would be his expenses and on that basis, the operator engages with their customers. This frequent up and down (in crude prices) will not have an impact. These are very temporary event-driven issues,” he said. 

 

“Three years back, when diesel prices were set, crude prices were at a higher level. So, I don't think we can expect anything negative in terms of crude right now,” he added

 

He felt that sustained high crude prices could push up input costs like rubber.

 

Kumar was speaking on the sidelines of a company event in New Delhi, where Ashok Leyland outlined plans to strengthen its footprint in North India.

 

The company is targeting an increase in its M&HCV market share in the region from 26 per cent to 30 per cent over two to three years.

 

Ashok Leyland, the flagship company of the Hinduja Group, currently operates nearly 300 channel outlets in North India and plans to add over 50 touch points this year.

 

“Northern India is the largest market for the commercial vehicle sector and contributes to more than a third of the total industry volume,” Kumar said during the event.

 

The company has gained nearly 6.5 percentage points of market share in the region over the past three years, driven by various factors, including cost efficiency, he said.

 

Looking ahead, Ashok Leyland plans to continue investing in new technologies and product development. It would also capitalise on infrastructure growth and freight mobility demands in the region.