Ashok Leyland’s Global Plan: Building Future of Mobility in the Emerging Markets

Ashok Leyland is on a bold and progressive path of becoming a world leader in commercial mobility, with the leadership of the Chairman Dheeraj Hinduja, which has a focus on emerging markets and sustainable technology. The company has set a positive momentum: in Q3 FY25 the company has registered a 33 percent year on year growth in exports (4,151 units versus 3,128 units a year ago) due to the demand in SAARC, GCC and African markets like South Sudan, Ethiopia and Chad.  

Futuristic Expansion in the Potential Markets 

Some of the geographies that Ashok Leyland has been keen to grow include Africa, Middle East/GCC, SAARC region, Southeast Asia (ASEAN) and South Sudan. Dheeraj Hinduja estimates about 30 percent of the flagship company’s export business under GCC. The plan will promise to enhance local participation in terms of creating local manufacturing and supply capability, differentiating products to suit local conditions, and use exports out of India as a platform. The company is also aiming for a sound expansion of the South-East Asia region, with FY 25 as a prospective best year for international business. 

Technology and Future Mobility 

Ashok Leyland is welcoming the revolution of commercial mobility, making investments in e-mobilisation, alternative fuel (LNG, hydrogen) and digitalisation. According to Dheeraj Hinduja, electrification is gaining pace, digitalisation and connectivity is transforming fleet management, after sales service and overall customer experience. The company has come up with battery electric vehicles (BEVs), hydrogen fuel-cell buses, hydrogen internal-combustion-engine trucks and LNG vehicles prototypes. 

Battery localisation is a major strength of the strategy. The company has declared that it has an exclusive long-term relationship with the CALB Group of China, to spend approximately Rs. 5,000 crores in the next 7-10 years to establish battery-pack and later full-cell production capabilities in India.  

The Vision of Strong Financial Performance   

Annual performance of Ashok Leyland in 2024-25 financial year, the company has recorded record annual performance; revenues of Rs. 38753 crores, operating PBT of Rs. 4245 crore (increases 9 percent) and profit after tax (PAT) of Rs. 3303 crore (9 percent increase). In the meantime, it has been converted into net-cash positive in the third quarter: net cash of Rs. 958 crores against net debt of Rs. 1,747 crores on the balance sheet at the end of FY24. 

FAQ’s  

Q1: How is Ashok Leyland expanding its EV business in the emerging markets? 

The company strategy of Ashok Leyland consists of battery-localisation in India (through CALB tie-up) to provide its own EV fleet, as well as to provide non-automotive energy-storage systems. It is implementing EV buses and trucks to produce globally competitive vehicles in India, which are aimed at geographies of emerging markets. 

Q2: What is the impact on mobility offering at Ashok Leyland with digitalisation? 

In addition to hardware, the company is integrating telematics, connected-services, predictive-analytics and after-sales digitalisation in its commercial vehicles. This leads to improved uptimes and fleet optimisation by the customers, especially in the fleets within new markets.