Ashok Leyland Targets 25% LCV Share, Expands Beyond 2–4T Segment

Ashok Leyland plans to deepen its presence in the light commercial vehicle (LCV) segment. Managing Director and CEO Shenu Agarwal confirmed this shift during the company’s post-results briefing. The push targets a broader product range and a sharper share of India’s evolving logistics market.

“We see a huge headroom in expanding our LCV business,” Agarwal said. “Currently, we are restricted to the 2–4 tonne segment, which accounts for only 50% of the overall LCV market.”

Today, Ashok Leyland mainly sells Dost and Bada Dost. These models anchor its presence in the 2–4T space. The company now plans to expand beyond this class. Its new focus includes the sub-2-tonne segment; a market led by Tata’s Ace and Mahindra’s Jeeto.

“A lot of effort will go into our LCV R&D to see how we can create winning products in this segment to capture that extra 30% market,” Agarwal added.

The company’s current growth gives it confidence. “Our market share is around 20% now, up from about 15–16% four to five years ago,” Agarwal noted. “We’ve also become the number two player in that market, which gives us confidence to aim for 25% market share in the medium term.”

Agarwal sees long-term opportunity in LCVs. He compared India’s market to global trends. “There is a belief at Ashok Leyland that the LCV market should grow faster than MHCV, because worldwide, LCV volumes in most major economies are at least 2.5 to 3 times that of MHCV. In India, that is not the case yet,” he said.

Urban demand is shifting. As e-commerce and quick commerce expand, more small vehicles are needed. LCVs serve this space well: offering agility, efficiency, and ease of movement in dense areas. “So the demand from the LCV segment should show up strongly in the coming years,” Agarwal added.

Ashok Leyland’s strategy supports this shift. Its goals include expanding product lines, adopting alternate fuels, and improving service. These moves are designed to drive profitable growth and meet rising demand—especially in cities. With a renewed product pipeline and a clear plan, Ashok Leyland aims to lead the LCV segment more broadly. If it succeeds, it could reshape its position in India’s commercial vehicle industry, moving from a focused player to a dominant one in urban mobility.

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