Ashok Leyland is preparing to debut electric LCVs early next year.

Ashok Leyland is preparing to launch its electric LCV series, hopefully by the end of this year or early next year. Medium and heavy-duty trucks, on the other hand, are still a few years away. They can't rely on the environment built for two- and three-wheelers. So that is still some time away.

Ashok Leyland is investing big in the market for electric passenger buses and light commercial vehicles. MD Shenu Aggarwal is sure that the CV cycle would be longer than usual this year, with strong demand expected over the next 18-24 months.

Electric buses & LCV

The electrification of public transportation buses is currently progressing at a rapid pace. Most STUs, including Switch, are developing criteria for electric buses. The senior officials believe this is the first section to take off, and it will gain significant traction in the coming years, supported in part by this e-mass mobility as a service.

The second, category that would come into play is the LCV market, which is comprised of smaller vehicles. Even Ashok Leyland is preparing to launch its electric LCV series, hopefully by the end of this year or early next year. Medium and heavy-duty trucks, on the other hand, are still a few years away. They can't rely on the environment built for two- and three-wheelers. So that is still some time away. However, it will begin to happen within the next three to four years.

Hydrogen Technology

On the hydrogen front, two technologies exist one based on ICE engines and the other on fuel cell technology. ICE Hydrogen is a technology that will be available in the near future since it requires fewer ecosystem-level inputs than fuel cells.

Ashok Leyland is working on both technologies, and collaborating with not only the participants in the technical field, but also with a large number of clients. For example, Ashok Leyland has collaborations with Reliance and Adani and also sells trucks to NTPC.

Now, technology maturation essentially means that, while technology is ready in the lab, one must test these vehicles in actual real-world settings. That is why there is a need to work with companies like Reliance, Adani, and NTPC to get some vehicles out in the field and operate them in real-world settings.

The company take all of that feedback and input into our labs and uses it to improve the technologies we've produced. New alternative fuels would necessitate not only new technology but also the development of a whole ecosystem to support them.

Battery Switching Concept

Battery Switching is a prevalent practice in other countries other than India. A few companies in India are also working hard to make this vision a reality. They are currently in the two-wheeler and three-wheeler segments, with plans to expand into commercial vehicles later.

However, MD Shenu Aggarwal believes that one or two businesses are highly confident in introducing this into the CV sector. So we're working closely with all of these players to see how we can incorporate capabilities like battery switching into our vehicles as well.

Going forward, international business represents a significant opportunity for Ashok Leyland. You know, when it first started, it did a great job in the areas that concentrated on, which were mostly SARC, GCC, and parts of Africa.

The strategy was to be local in those markets so that the company could better understand them. Ashok Leyland has local assembly operations in many of these countries, which gives us significant advantages, not just in cutting costs, but also in better knowing the market and working directly with consumers.

In the future, we plan to focus more on countries in the ASEAN region. That will be our next focus.

Growth in MHCVs

MHCVs are gaining traction right now. MHCVs expanded by around 40%+ last year, whereas Ashok Leyland grew by 70%+ in MHCVs. On the MHCV side, Ashok Leyland currently has stronger tailwinds.

Whatever parameter you look at, whether it is the government's infrastructure spending, policies, the pent-up demand in the MHCV industry, the replacement cycle, or the ageing of the vehicles,

MHCVs are poised for a longish period of growth. In terms of growth, LCVs may not be particularly strong in FY24. However, Ashok Leyland remains positive about LCV in the long run.

In terms of growth, LCVs may not be particularly strong in FY24. However, LCV will increase significantly in the long term.