Ashok Leyland has delivered an LNG powered haulage truck –AVTR 1922 – to Mahanagar Gas Limited in Hosur (Tamil Nadu) marking yet another significant development in sustainable mobility in India. 

The LNG powertrain of the truck was developed in-house and is BS VI Stage II compliant. The truck, the AVTR 1922 is based on the modular AVTR platform and shares a high degree of commonality with Ashok Leyland's existing diesel truck range.  The result of this is an amount of familiarity in terms of ease of service.   

Stating that Ashok Leyland’s steadfast commitment revolves around the dynamic needs of customers in the ever-evolving world of sustainable transportation, Sanjeev Kumar, President – MHCV, Ashok Leyland, mentioned that innovations in alternate energy space will not only provide eco-conscious solutions, it will also ensure long term profitability for our esteemed customers. 

Of the opinion that a local supply chain must gear up for progress in the field of alternative fuels, Dheeraj Hinduja, Executive Chairman, Ashok Leyland, referred to the strong performance of the company in the second quarter of FY2023-24.

Emphasising that the robust all-round performance of Ashok Leyland during the respective quarter exemplifies its technological and cost leadership, he expressed, “While International business globally is challenged owing to the conflicts across the globe, we are intensifying our expansion strategy in our focus markets of Middle East, Africa and Asia. The Company continues to build its capabilities in alternative energy and shall be soon coming up with some exciting products and solutions.”

Confident that the rest of the two quarters of the FY2023-24 will bring further growth on the back of strong macroeconomic factors, Hinduja informed that their MHCV, ICV and bus segments have recorded good performance. 

For Q2 FY2023-24, Ashok Leyland has reported revenues of INR 96.38 billion vis-a-vis INR 82.66 billion in Q2 FY2022-23, marking a growth of 17 percent. Profit After Tax (PAT) of INR 5.61 billion for the quarter grew 181 percent over same period last year.

The CV maker’s domestic MHCV volume at 29,947 units grew by 18 percent as compared to the Q2 FY2022-23 volume. LCV volumes during Q2 FY2023-24 were 16998 units – almost the same as Q2 FY2022-23 (17,040 numbers). Export volumes for the quarter (MHCV & LCV) were 2901 units, four-per cent higher despite socio-political challenges across the globe.

Witnessing good movement in the MHCV space, Ashok Leyland saw a significant increase in its bus market share making us the Number 1 bus manufacturer in India.

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) for Q2 FY2023-24 was INR 10.80 billion (11.2 percent) as compared to INR 5.37 billion (6.5 percent) in Q2 FY2022-23. Net Debt at the end of the quarter stood at INR 11.39 billion with a Debt Equity at 0.1 time.

All other businesses of Ashok Leyland posted good growth in the current quarter.  The company expanded its MHCV range by launching new products in tipper, tractor and MAV categories. The focus on expansion of distribution network continued with further addition of 47 touch points in the quarter – especially in the Northern and Eastern parts of the country.

The Board of Directors of Ashok Leyland in their meeting held today, have approved an investment of INR 12.00 billion in Switch Mobility as equity through its holding company Optare PLC, UK.  The funds infused will be used for capital expenditure, R&D and meeting operational requirements both in UK and India. The funds will be infused over the next few months after necessary statutory approvals in one or more tranches.

Switch Group of Companies (Switch Mobility Ltd - UK and Switch Mobility Automotive Ltd- India) house the Electric Mobility initiative of Ashok Leyland with a focus on e-buses and e-LCVs. 

Over the last few years, Switch India has had major success in garnering orders from State Transport Undertakings. As on date Switch in India and UK has over 800 buses plying successfully and has an order book of over 1200 buses. 

Switch India had a successful launch of India’s only Double Decker e-Bus last year. In September 2023, the Ashok Leyland subsidiary launched its state-of-the-art e-LCVs. The company has signed MoUs of over 13000 vehicles for its much-awaited e-LCVs which it will start delivering from the fourth quarter of the current fiscal.

“Electric Vehicles especially in buses and light trucks have a very bright future as Governments and private customers are driving the green agenda. We are very happy with the progress made by Switch, and we will continue to invest on building its capabilities. We are confident that Switch will grow further in the European markets with the launch in 2024 of our new E1 12 m bus developed specifically for the European market. Our portfolio of electric buses will cover value and premium segments meeting all price points for many global markets,” Hinduja commented. 

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Bombay Logistics has flagged off a fleet of liquefied natural gas heavy-duty trucks manufactured by Blue Energy Motors for commercial operations in Karnataka. The vehicles will operate in the Toranagallu region to support industrial freight transport for JSW Steel.

The LNG trucks are said to offer up to 20 percent higher fuel efficiency compared to conventional fuel equivalents, reducing carbon intensity across long-haul freight operations.

Thimmaraj Kakarla, Managing Partner, Bombay Logistics, said, “For us, the move to LNG is about finding a practical solution that works on the road and makes commercial sense. The performance and fuel efficiency of the Blue Energy Motors trucks were important considerations, while the Blue Energy Motors team’s support throughout the deployment, from vehicle handover and route planning to on-ground assistance, made the transition seamless. As these trucks begin operations for JSW Steel, we see this as a meaningful step towards improving operating efficiency while reducing the carbon footprint of our freight movement.”

Anand Mimani, CEO of EV and New Energy, Blue Energy Motors, said, “We are pleased to support Bombay Logistics in deploying our LNG trucks for demanding industrial operations. For us, the priority is simple: deliver the performance and reliability the customer needs while making the shift to cleaner freight practical.”

At present, Blue Energy Motors maintains an operational fleet of over 1,400 alternative-fuel trucks across Indian freight corridors. The company says these vehicles have recorded over 100 million kilometres and reduced carbon dioxide emissions by more than 30,000 tonnes.

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Ashok Leyland’s battery pack manufacturing plans are designed to boost vehicle integration and open new revenue streams, not just cut costs or meet local-sourcing rules, said Chief Executive Officer Shenu Agarwal during the company’s Q1 FY27 financial results announcement.

The Hinduja Group-controlled truckmaker is building a battery pack plant in Tamil Nadu, with production slated to start in 2027. The facility, located in the SIPCOT Pillaipakkam Industrial Park near Chennai, forms the first phase of a broader INR 75 billion commitment by the group.

Speaking to Motoring Trends on the same, Agarwal's said, “Don't look at the battery pack business just from a cost perspective or localisation perspective. The company will meet local-content requirements to the extent that we can make it more efficient.”

He added that the company is designing its own battery packs and battery management systems in-house, which will let the company integrate it better into its vehicles and create a total cost of ownership advantage for the customer.

The strategy also extends beyond Ashok Leyland's own line-up. “We are also evaluating how to supply the solutions to other automotive players,” Agarwal said, while pointing to rising demand for battery energy storage systems as a separate growth avenue.

“This battery pack business has multiple dimensions,” he noted, adding that the initiative is meant to enhance value for truck and bus customers rather than serve as a narrow cost play.

Earnings call

Ashok Leyland posted a record first quarter with strong domestic commercial-vehicle demand helping the automaker withstand disruptions in international markets and broader geo-political uncertainty.

The company achieved its highest-ever first-quarter revenue, profit before tax and net profit, while its cash position improved by INR 14.31 billion from a year earlier, net of dividend, capital expenditure and investments in group companies, Executive Chairman Dheeraj Hinduja said.

“The business environment tested the robustness of our processes and resilience of our teams and partners. Ashok Leyland has come out stronger, achieving new peaks,” Hinduja said.

Domestic commercial-vehicle industry volumes grew in double digits during the quarter with Ashok Leyland's medium and heavy commercial vehicle truck volumes rising 15 percent from a year earlier.

Domestic light commercial vehicle volumes reached a record 18,874 units, while the company’s overall commercial-vehicle volumes increased 10 percent year-on-year, Hinduja said.

The company also maintained its 14th consecutive quarter of double-digit EBITDA margin underscoring its focus on profitable growth, he said.

Non-commercial vehicle businesses including aftermarket, engines and defence also reported healthy performance, Hinduja said. The company continued to invest in products and manufacturing capabilities including the launch of multi-axle trucks equipped with air suspension, which offers higher payload and lower TCO.

Ashok Leyland also launched a 12-meter fuel-cell bus, which Hinduja described as an industry first.

Its electric mobility subsidiary Switch India recently secured an order for 650 electric buses, while the group’s financing businesses, Hinduja Leyland Finance and Hinduja Finance, reported assets-under-management growth of 20 percent and 13 percent, respectively.

The company remains cautious about global uncertainties but is confident of navigating them on the back of the stronger foundation built in recent years, Hinduja said.

“It was satisfying to see the company deliver in the face of challenges presented by global uncertainties. Our performance demonstrated that the business model we have developed can absorb shocks,” he said.

“We remain cautious of global uncertainties but we are confident of navigating these based on the strong foundation we have built over the last few years,” Hinduja added.

The comments come as Ashok Leyland's international commercial-vehicle volumes fell to 2,461 units in the first quarter from 3,011 a year earlier, primarily because of the crisis in West Asia. Growth in South Asia and Africa partly offset the decline with the company seeing stronger momentum from June.

Hinduja said the company’s domestic performance demonstrates the strength of India's commercial-vehicle market and gives it confidence in its ability to sustain growth despite external volatility.

Ashok Leyland’s battery strategy comes as the company strengthens its portfolio amid robust domestic demand and global uncertainty. By developing battery packs and management systems in-house, the automaker aims to capture more value across the electric-vehicle ecosystem, while exploring external customers and energy-storage applications as additional growth opportunities beyond its core vehicle business.

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Mahindra Truck and Bus, a division of the Mahindra Group, has introduced the Mahindra Blazo i-TRK heavy commercial vehicle range in India.

The vehicle range features Mahindra's 320hp mPOWER engine and the iMAXX 2.0 fleet telematics platform.

The company says the new Blazo i-TRK delivers up to 10 percent higher fuel efficiency compared to previous models. Mahindra has also introduced a 48-hour uptime guarantee for the vehicle range, offering a compensation scheme of INR 10,000 per day in cases where service timelines are not met.

The telematics platform connects vehicle systems to provide fleet operators with operational data, remote monitoring capabilities and maintenance management tools. The integration of connected vehicle technology is intended to support freight movement and fleet productivity across Indian transport routes.

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Eicher Trucks & Buses, a division of VE Commercial Vehicles (VECV), has inaugurated its 11^th Regional Competence Development Centre (RCDC) at Deenbandhu Chhotu Ram University of Science and Technology (DCRUST) in Murthal, Haryana. The facility was inaugurated by the Chief Minister of Haryana, Nayab Singh Saini.

The centre was established in collaboration with DCRUST to provide technical instruction and skill training in commercial vehicle technologies. It covers 7,900 square feet and contains classrooms, workshops, vehicle practice bays, diagnostic tools and training platforms for light, medium and heavy-duty commercial vehicles. It features dynamic driveline models, engine sections, electrical laboratories, a vehicle inspection pit and VECV's mobile training unit.

S S Gill, Chief Commercial Officer, VE Commercial Vehicles, said, “We are grateful to the Chief Minister of Haryana Nayab Singh Saini, the Government of Haryana and our partner, DCRUST, for their support in making this Regional Competence Development Centre a reality. At Eicher, we believe the future of the commercial vehicle industry will be shaped as much by skilled people as by advanced technologies. Through this collaboration, we are creating a strong foundation for future-ready talent and contributing to a resilient mobility ecosystem.”

Sumit Dewan, Senior Vice-President, VE Commercial Vehicles, said, "Through our partnership with DCRUST, we are creating a platform that enables students, faculty and dealership professionals to gain hands-on exposure to advanced commercial vehicle technologies and evolving industry practices. Students from the centre will have the opportunity to serve in their communities through Eicher’s nationwide network of dealerships across Delhi-NCR, Haryana and Western Uttar Pradesh. The centre will strengthen technical capability across our service network, enhancing customer experience through improved vehicle uptime and operational efficiency.”

The curriculum covers areas including electric vehicles, mechatronics, powertrains, automated transmissions, vehicle electronics, diagnostics, telematics, emission control systems, driver assistance systems and alternative fuels such as CNG and LNG.

The Murthal facility will support the training needs of nearly 50 dealerships across Delhi-NCR, Haryana and Western Uttar Pradesh. Approximately 150 engineering students from DCRUST will use the facility annually, while the mobile training initiative is expected to reach 600 students per year across technical institutions in the region.

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