Ashok Leyland, the Chennai-based commercial vehicle company, is working to increase its market share in South India. Currently, the company holds over 40% of the Medium and Heavy Commercial Vehicle (MHCV) segment. Ashok Leyland now aims to boost this share to 45% in the coming years.
Shenu Agarwal, MD and CEO of Ashok Leyland, said the increase would be gradual. The company plans to achieve this by improving its after-sales service network. By providing excellent customer support, Ashok Leyland hopes to retain current customers and attract new ones through word-of-mouth.
“Our main focus is to enhance our service standards,” Agarwal said. The company has started an internal program to set industry-leading service benchmarks. Ashok Leyland is also expanding beyond South India. It has plants in Maharashtra, Rajasthan, and Uttarakhand, and is setting up 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 to 5,000 buses as demand grows.
Most of Ashok Leyland’s operations are in the South, with plants in Ennore and Hosur, Tamil Nadu, a foundry in Sriperumbudur, and a technical center in Vellivoyalchavadi. It also has a bus manufacturing facility in Vijayawada, Andhra Pradesh.
The Ennore plant, spread over 121.9 acres, is the flagship unit, producing everything from engines to assembled buses and trucks. Hosur’s plant 1 focuses on engine assembly and spare parts distribution, while plant 2 manufactures a wide range of commercial vehicles. The Vijayawada plant has the capacity to produce 4,800 units per year.
Ashok Leyland’s focus on South India is significant because the region includes some of India’s most industrialized states, like Tamil Nadu, Karnataka, and Andhra Pradesh. It also has a strong automotive base with major companies like Daimler India, TVS Motors, and Royal Enfield operating in the area.
