Ashok Leyland To Add Over 50 New Dealerships, Service Points In North India, Eyes 30% Market Share

Ashok Leyland is ramping up its presence in northern India with plans to open more than 50 new dealerships and service outlets this year, as it aims to push market share in the region to 30% over the next 2–3 years.

Speaking to NDTV Profit, Ashok Leyland's Medium and Heavy Commercial Vehicle segment President Sanjeev Kumar said the company wants to ensure a service centre every 50 km, a move aimed at consolidating its grip on the country’s largest commercial vehicle (CV) market. It currently operates nearly 300 touchpoints in the region.

Kumar said the government’s infrastructure push, particularly the capex momentum seen in Q4 last year, is proving to be a major tailwind for the MHCV industry. Growth in steel and cement is also expected to lift demand for trucks, alongside continued expansion of the e-commerce sector and strong procurement activity from state transport undertakings.

On the flip side, Kumar flagged a temporary blip in road-based logistics, as the railway’s Dedicated Freight Corridors (DFC) continue to improve freight efficiency. "As rail logistics improves, we might see some shift in load away from trucking," he admitted. Still, he added, "Overall indicators remain positive."

Kumar downplayed the impact of Middle East tensions, saying the Iran-Israel conflict is a "one-off event" and that CV exports remain unaffected.

On the cost front, Ashok Leyland expects raw material prices to rise, but plans to manage margins through product price adjustments and internal efficiencies. The company is also closely monitoring the rare earth magnet shortage, but Kumar said no production or delivery targets have been hit so far, with vendors and the government working to keep supplies stable.