Ashok Leyland Aims to Double LCV Market Share in East, North
Nov 02, 2023 19:15
Ashok Leyland targets doubling its LCV market share in east and north India, fueled by e-commerce growth and shifting consumption patterns. The company also plans to expand its outlet network in the region.
Photograph: Kind courtesy Ashok Leyland/Instagram
Kolkata, Nov 2 (PTI) Commercial vehicles major Ashok Leyland on Thursday said the company aims at doubling its current market share of 6 per cent in the 2-3.5 tonne segment in east and north India, betting big on the e-commerce push and changing consumption patterns.
It is also looking at more than doubling its number of outlets in the region to 370 by the 2024-25 fiscal.
"Today if you see, north and east put together, we have just around 6 per cent market share (in the 2-3.5 tonne segment). We plan to double this, because our market share apart from these two regions is in the 30-per cent range," said Amandeep Singh, president LCV, International Operations, Defence & Power Solutions.
The flagship company of the Hinduja Group also aims at taking its pan-India market share to 25 per cent from 20 per cent at present in the segment, he told reporters here.
Singh, however, did not mention a timeframe for achieving the market-share targets.
Talking of West Bengal, he said 50 per cent of its eastern market sales comes from the state, where the company has grown the "fastest".
"In just two years, we have doubled our market share in the segment in West Bengal, which is around 15-16 per cent. However, we feel we can go much higher in east in volume as well as market share," Singh said.
He said the market for light commercial vehicles (LCVs) will grow much faster in the next few years, because of various factors going in its favour.
"First is e-commerce that leads to a lot of last-mile door-to-door deliveries happening. Second is that our consumption patterns are moving up the value chain. A lot of packaged products are now being consumed... When this packaged transportation takes place, the cubic requirements go up significantly, and that is where the need for more number of such vehicles to deliver to these consumption centres arises," Singh said.
The senior company official said expressways getting linked with cities and its suburbs also augurs well for the LCV segment.
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