Ashok Leyland Aims to Boost Market Share in South India

Key Highlights:

• Ashok Leyland wants to raise its South Indian market share from over 40% to 45%.
• The company will focus on improving after-sales service to attract and keep customers.
• Ashok Leyland is starting a program to set new service standards.
• It is building a new factory in Lucknow to make up to 5,000 vehicles a year.
• Most of its operations and sales are still based in South India.

Ashok Leyland, the Chennai-based commercial vehicle manufacturer, is trying to strengthen its hold on the South Indian market. Already a regional powerhouse, the business now controls more than 40% of the Medium and Heavy Commercial Vehicle (MHCV) market.

Ashok Leyland has set even higher goals, intending to increase its market share to 45% within the next five years.

New Manufacturing Facility

To support its growth ambitions, Ashok Leyland is expanding its manufacturing capabilities. The company recently announced plans to build a new facility in Lucknow with an investment of over Rs 1,000 crore.

This plant will initially produce 2,500 buses per year, with plans to increase capacity to 5,000 vehicles annually over the next decade, addressing the rising demand for electric bus and other types of buses.

Once operational, it will become Ashok Leyland's sixth vehicle plant in the country. However, the majority of its sales and manufacturing operations continue to be based in the South.

The commercial vehicle manufacturer has plants in Ennore and Hosur, as well as a foundry in Sriperumbudur and a technical center in Vellivoyalchavadi, Tamil Nadu. It also operates a bus manufacturing facility in Vijayawada, Andhra Pradesh.

Existing Plants and Operations

Ashok Leyland's operations in South India include several key facilities:

• Ennore Plant: The flagship unit in Tamil Nadu, covering 121.9 acres, handles engine, gearbox, axle production, and assembly of buses and trucks.
• Hosur Plant 1: Specializes in engine assembly and spare parts storage.
• Hosur Plant 2: Produces a range of commercial vehicles from 2.5 to 55 tonnes.
• Vijayawada Plant: In Andhra Pradesh, this plant produces up to 4,800 buses annually.

The company also operates plants in Bhandara (Maharashtra), Alwar (Rajasthan), and Pantnagar (Uttarakhand), and continues to strengthen its presence in South India.

It also has several strong automotive bases, including those around the Chennai-Bengaluru industrial belt. Many prominent OEMs are also headquartered in the region, including Daimler India Commercial Vehicle (DICV), TVS Motors, Royal Enfield, Mahindra & Mahindra (M&M), Volvo Eicher, Ather Energy, Renault India, Nissan Motors, TAFE tractors, and Caterpillar.

Also Read: Ashok Leyland Reports 9% Decline in Q1 Net Profit

CMV360 Says

Ashok Leyland's focus on enhancing its after-sales service network is a smart move. In a competitive market, exceptional customer service can significantly boost brand loyalty and drive sales. The planned expansion of manufacturing facilities also positions the company well to meet future demand, particularly for electric vehicles.