“Our next target in terms of geographical expansion is Southeast Asia. We have been talking about it for a long time. We want to get into four different markets in Southeast Asia. “We expanded our range of products (in Middle Eastern markets) and that is why as a result we believe we should be in a position to record one of the best years when it comes to international operations” – Shenu Agarwal, Managing Director and CEO
Source: Economic Times. Read The Article
Ashok Leyland is intensifying its international expansion efforts, setting its sights on Southeast Asia to drive export growth in the coming year. This strategic push is part of a broader plan to strengthen its presence outside India while maintaining strong domestic sales. The company has already launched operations in the Philippines, with Malaysia lined up next, aiming to establish a firm foothold in the region.
Financially, the company’s performance in recent quarters has shown resilience and growth. Profits have risen significantly, positioning Ashok Leyland to support its expansion goals and new initiatives effectively. Its electric vehicle arm, Switch Mobility, is a pivotal part of the growth strategy. Specializing in electric buses and light commercial vehicles, Switch Mobility has increased its production capacity, aligning with the rising demand for sustainable transport solutions. The subsidiary is approaching EBITDA break-even, a sign of steady progress and market traction, further supported by a large order backlog.
The company’s growth plans aren’t without challenges. The medium and heavy commercial vehicle segment experienced a slight slowdown, impacted by weather disruptions and delays in government capital expenditure. However, these factors are viewed as temporary, and Ashok Leyland expects market conditions to stabilize, supporting growth through the remainder of the fiscal year.
Ashok Leyland’s focus on alternative fuels and electric vehicles also reflects a strategic alignment with global shifts towards cleaner and more efficient transport solutions. This expansion into emerging markets, coupled with a commitment to sustainable innovation, underscores its intention to be a forward-looking player in the commercial vehicle sector. PSR
Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research
