Ashok Leyland Is Set To Launch Its First Four-Wheeled Electric Small CVs Soon

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Updated On: 05-Jul-2023 12:16 PM

Ashok Leyland is also planning to expand its foreign operations by targeting more new markets with a new range of vehicles

Ashok Leyland is also planning to expand its foreign operations by targeting more new markets with a new range of vehicles.

Ashok Leyland's upcoming electric small commercial vehicles (e-SCV) will be manufactured at its light commercial vehicle (LCV) production site in Hosur, Tamil Nadu. The company will release two new electric vehicles based on the Dost and Bada Dost series.

To sell the next electric vehicles, Ashok Leyland is also collaborating with its subsidiary brand, Switch Mobility. The trucks will be assembled at the LCV production facility and marketed under the Switch Mobility brand. Ashok Leyland is confident to meet the demand for its upcoming electric vehicles.

Ashok Leyland is also planning to expand its foreign operations by targeting more new markets with a new range of vehicles offering three levels of complexity.

As the brand's vehicle range expands, it will be able to compete in the 2.5 lakh unit addressable market of SAARC, Africa and the GCC, ASEAN, the CIS, and the North African market. In the last few years, the brand has expanded into 10 new nations in West and Southern Africa, now serving 38 countries with trucks and buses. Furthermore, the company intends to expand its operations to 50 nations in the future years.

Also Read: Ashok Leyland's domestic sales increased by 2.31% in June 2023.

The brand wants to be a full-range player in the LCV category. The company intends to launch products in new and existing segments both in intermediate commercial vehicle (ICV) and electric variants.

The brand does not have any vehicles in the sub-two-tonne sector, which accounts for 35% of the overall LCV industry. The brand may easily enter the segment with this new vehicle.

Since its founding, the company has posted its highest-ever volume in FY23 and has risen to second place in the LCV 2-tonne to 3.5-tonne market.

Ashok Leyland has only catered to 50% of the LCV market, which will expand to 60% by the end of FY25 and 80% by 2025. The 5.5 lakh LCV units are divided into three categories.

The 0-2 tonne segment accounts for 35% of all vehicles. The 2-3.5 tonne segment accounts for 59% of the 3.28 lakh unit yearly LCV volume. Finally, the 3.5-7.5 tonne segment accounts for 6% of the LCV market and 34,000 sales units in FY23.

Furthermore, the business says that its modular vehicle platform - "AVTR" - accounts for the majority of demand. As a result, it intends to expand AVTR model manufacturing operations across its northern and southern production locations.