Ashok Leyland captures 35% of market, further growth expected

Reports claim that Chennai based Ashok Leyland has garnered a 35% share in the medium and heavy commercial vehicles market this July. This has been attributed to an expanding dealership network across the country, a rising industry demand, along with highly discounted vehicles. The company has seen relatively good performance throughout the year, possibly among their best ever. From April to June, the brand had a market share of 31%. “The product variants chosen by the company for launch in domestic and select export markets in last one year across the segments have improved market share in domestic market as well as increase in export sales. Ashok Leyland had also focused on improving the network on cost effective basis particularly in north, central and eastern regions,” said the company in its annual report.

The truck maker recorded a 53% year on year increase for the month of July, having rolled out 8803 units. Its sales volumes for the April to June quarter further grew by 44%, touching 21,485 units against 14,908 units the last year. Axis Capital, in one of its reports on the automobile sector, had this to say: “Ashok Leyland’s market share reached all time high driven by market share gains in the above 25 tonne truck (up 400 bps to 38%) and bus segment (up 200 bps to 38%). Overall, AL has outperformed the industry, driven by strength in the south Indian market coupled with market share gains in other relatively untapped regions.”

The company has bolstered its market position with stronger sales in Northern and Eastern India, coming from an expanded dealership. Within the financial year of 2015, the company opened 58 dealerships across the country, and a significant portion of them are located in North India. In addition to this, the company continued to give high discounts for its trucks and buses, which further accelerated sales amidst a rejuvenated truck market. Analysts propose that the company's standing would further grow, as truck fleet operators rush to buy new vehicles before a compulsory ABS implementation that would raise truck prices.