Ashok Leyland has signed a memorandum of understanding (MoU) with Union Bank of India to provide vehicle financing facilities to customers purchasing its trucks and buses. The agreement aims to improve access to finance by offering customized loan solutions and repayment options for commercial vehicle buyers.
The MoU was signed by Neelakantan, Vice President – Finance at Ashok Leyland, and Alok Kumar, General Manager and Zonal Head at Union Bank of India. DS. Madhusudhan, Head – Sales Finance, and Kapil Pandya, Head – Retail and Inventory Finance – LCV, represented Ashok Leyland at the signing.
Under the agreement, Union Bank of India will provide end-to-end financing solutions for Ashok Leyland customers. The two companies intend to offer vehicle loans with flexible repayment terms suited to the needs of individual buyers, fleet operators and businesses.
KM Balaji, Whole-Time Director and Chief Financial Officer of Ashok Leyland, said the partnership would use Union Bank of India’s network to expand access to the company’s commercial vehicles across India. He said Ashok Leyland’s trucks and buses were designed to improve operating efficiency and productivity, supported by technology and a focus on total cost of ownership. Easier access to financing, he added, would help businesses acquire vehicles for their operations.
Madhavi Deshmukh, Senior Vice President and National Sales Head – Medium and Heavy Commercial Vehicles at Ashok Leyland, said the company aimed to make vehicle ownership more accessible through financing arrangements that support customers’ business requirements. She said the partnership would provide fleet operators and businesses with greater financial flexibility while helping them select vehicles suited to their transport and operating needs.
Alok Kumar of Union Bank of India said the agreement reflected the bank’s focus on providing accessible financial solutions to businesses. He said the collaboration was intended to simplify commercial vehicle purchases and help customers strengthen their operations and pursue growth opportunities.
Ashok Leyland manufactures a broad range of commercial vehicles, including light commercial vehicles, long-haul trucks and buses. Its products serve different transport requirements, from intercity operations to passenger transportation. The company also offers buses powered by alternative fuels as part of its work on transport solutions aimed at reducing pollution. Its commercial vehicle range includes features intended to support safety and driver comfort.
The new agreement adds a financing channel for customers considering Ashok Leyland vehicles. By combining the manufacturer’s sales network with Union Bank of India’s lending services, the partnership is intended to support purchases by transport operators and other businesses that depend on commercial vehicles.
Ashok Leyland is the Indian flagship company of the Hinduja Group and a commercial vehicle manufacturer. Its product portfolio includes trucks, buses and light commercial vehicles for a range of transport and business applications. With a strong presence in domestic and international markets, Ashok Leyland serves customers across more than 50 countries through an extensive sales and service network. The company is actively investing in alternative fuel technologies, including electric, LNG, CNG and hydrogen-powered vehicles, while advancing connected mobility and digital solutions to support sustainable transportation. Through continuous product innovation, manufacturing excellence and a focus on customer-centric solutions, Ashok Leyland remains a key contributor to India’s commercial vehicle industry and infrastructure development.
