Ashok Leyland is charting an aggressive growth trajectory for its export business, aiming to more than double its export volumes over the next three years compared to FY24 levels. The leading truck and bus maker seeks to expand its global presence by penetrating new markets while reinforcing its position in existing ones.
The company has set an ambitious medium-term export target of 25,000 units. For the current fiscal year, it aims to achieve exports of about 15,000 units, a substantial rise from last year’s figure of around 11,850 units. Despite certain challenges, the company remains optimistic about meeting this goal, driven by a strong order book, Shenu Agarwal, Managing Director, said during the company’s Q3FY25 earnings call.
He attributed the export surge to Ashok Leyland’s strategic initiatives over the years, including investments in manufacturing assembly facilities, local branch offices, and on-ground teams in key international markets. These efforts have significantly bolstered the company’s presence in regions like the UAE and Bangladesh, where it has established itself as a dominant brand in the commercial vehicle sector.
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To sustain this momentum, the company is leveraging its strong brand presence and well-established distribution network to introduce more market-specific products. With this strategy, Ashok Leyland is confident of steadily increasing its export volumes and achieving its medium-term target of 25,000 units within the next three years, Agarwal added.
The company’s export business recorded a 33 per cent growth in Q3, with total export volumes rising by 19 per cent over the nine months. The order book for Q4 remains robust, signalling continued growth in the coming quarters.
‘A mix of buses and trucks’
A key driver of this growth has been the company’s increased focus on Left-Hand Drive (LHD) variants for trucks and buses, facilitating entry into new markets. The Gulf Cooperation Council (GCC) region—particularly the UAE and Saudi Arabia—continues to be the primary growth engine, followed by Africa and SAARC markets.
“Previously, our exports were largely concentrated in buses. However, in recent years, we have successfully diversified to include a balanced mix of both buses and trucks,” noted Dheeraj Hinduja, Executive Chairman, during a recent media interaction.
Going forward, Ashok Leyland plans to consolidate its position in existing markets and focus on SAARC nations. Additionally, the company is actively working to establish a foothold in the ASEAN market, developing distributor partnerships and tailoring products to meet the specific needs of ASEAN customers.