Recording a 353 percent increase in the revenue for the first quarter of FY2021-22 at INR 29,510 million in comparison to the revenue generation of INR 6,510 million in the corresponding quarter of FY2020-21, Ashok Leyland is confident of a strong demand emerging post the second Covid-19 wave. Clocking export volumes of 1,437 units in the first quarter of FY2021-22, up 254 percent when compared to the export of 405 units in the first quarter of FY2020-21, the commercial vehicle manufacturer is concentrating on vaccination and the adherence of safety protocols to try and ensure that all its stakeholders stay protected from a potential third wave. Experiencing a 1,041 percent growth in domestic M&HCV volume in the first quarter of FY2021-22, which is almost twice than that of the industry growth volume at 562 percent during the same period, the company has reported a net loss of INR 28,20 million in the first quarter of FY2021-22 as against a net loss of INR 38.90 million in the corresponding quarter of FY2020-21. Selling 8,690 LCVs in the domestic market in the first quarter of FY2021-22, up 224 percent as compared to the sale of 2,686 LCVs in the corresponding quarter last fiscal, Ashok Leyland is closely observing the way the freight rates are shaping up. It is confident that freight rates will improve with higher availability of commercial vehicles once the Covid-19 subsidies and uncertainty fades. “We are hoping for the volumes to grow higher as the market gets better,” mentioned Mahadevan. “July (2021) has been a growth month,” he added. Stressing that they have had eight months of degrowth, Mahadevan said, “Economic growth will induce growth in CVs.”

CV trends
Working on a strategy for a robust domestic and exports growth, the commercial vehicle major is appointing dealers in Africa. Looking at gaining good traction in South East Asia, Ashok Leyland will launch new products in the LCV segment even though not in the immediate quarter. Buoyed by the international markets opening up and experiencing export thrust, the company is said to be testing an electric version of its LCV platform on which the Bada Dost is based in the UK. This vehicle is expected to be launched at the end of this fiscal or in the first half of the next fiscal. Of the opinion that electric vehicles are catching up, especially at the local point of use, on the encouragement of the governments, Mahadevan averred, “It is more to do with buses, but trucks will catch up.” Seeing a trend of petrol commercial vehicles in the low-tonnage segment of sub-1 tonne to 1.5 tonne, Mahadevan drew attention to the push on CNG. “We are ready in the LCV and ICV (segment),” he added. Of the firm belief that diesel vehicles will continue and the IC engine will coexist and not die overnight, Mahadevan said, “We are ready to cater to higher demand.” 
 

Watching closely how freight operators are able to pass on the fuel price hike to their end customers, Ashok Leyland is hoping that bus commute will pick up. A 40,000 units per annum market, according to Mahadevan, buses have been severely affected due to the Covid-19-led disruption. Delivering 40 electric buses to the city of Chandigarh recently (from where it has bagged an order to build and maintain e-buses with quick charging technology), Ashok Leyland is expecting pent-up demand to show up once normalcy returns. Also expecting demand to show up because of the need to ferry people without sacrificing social distancing norms, Mahadevan drew attention to their work towards further strengthening their position in the bus and LCV market segments. With the talk of schools reopening in regions where the Covid-19 infections are down, and the relaxation in Covid-19 norms in some region allowing more employees to return to their offices, bus demand is expected to improve post witnessing a sudden downfall mid-last year. Through the establishment of Switch Mobility, Ashok Leyland is keen to experience a speedier ride in the ‘cleaner and greener’ bus space. 
 

Managing costs and productivity 
Eyeing international markets like the US, Europe and Japan, the company, through the Switch Mobility subsidiary, has worked with a few consultants to make sure that its data points and numbers are on par with the current situation. Under Switch Mobility, it is developing new products to present an advantage of unique position in terms of value and premium positioning. For its Switch Mobility subsidiary that includes the erstwhile Optare of UK, Ashok Leyland has managed to get USD 18 million worth of investment from Dana Incorporated (Dana), a US-based manufacturer of drivetrain and e-propulsion systems. To do de-bottlenecking once enough demand is evident, Ashok Leyland, investing sufficiently in terms of capex, is confident of seeing early growth sprouts in LCVs. Therefore, if it were to do immediate capex investment, it would be in LCVs. Discussing with scrappage centres post the announcement of the scrappage policy, Ashok Leyland, the second-largest CV maker in the country, is witnessing good traction from its other business verticals like defence, power solutions and aftermarket. They are contributing to its top line. 
 

With the pace of vaccination picking up and positively setting in, Ashok Leyland is expecting a demand spike in commercial vehicles after the fear of a third Covid-19 wave is over. This, according to Mahadevan, could happen in the second half of this fiscal. Focusing on costs, productivity and middle level management, the commercial vehicle major is also concentrating on reducing its carbon footprint. Apart from announcing strategic steps to move towards net zero carbon mobility through Switch Mobility, Ashok Leyland, said Mahadevan, has formed an ESG committee of the Board. The committee will guide and propel the commercial vehicle manufacturer to achieve its sustainability agenda.
 

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The Federation of Automobile Dealers Associations (FADA) has released the results of its Dealer Satisfaction Study (DSS) 2025. The study, conducted in partnership with the Singapore-based consulting firm PremonAsia, was announced at the 7th Auto Retail Conclave on 10th September.

C.S. Vigneshwar, President, FADA, noted that the study provides a ‘true mirror’ to the relationship between dealers and OEMs. The study surveyed over 1,800 dealer principals, representing nearly 5,000 outlets across the country. For the first time, it was conducted in nine regional languages to ensure broader participation.

• JSW MG Motor captured the top position in the 4-Wheeler Mass Market segment with a score of 868 points.
• Royal Enfield led the 2-Wheeler segment with 852 points, followed by Hero MotoCorp. Both companies showed improvement from the previous year.
• Ashok Leyland retained its leadership in the Commercial Vehicle segment with 786 points.
• The 3-Wheeler segment was included again after three years, with Atul Auto topping the category with a score of 924 points.
• Volvo Cars topped the 4-Wheeler Luxury segment with 884 points.

The industry average dealer satisfaction score was 781, a 13-point increase from the previous year. Product continues to have the highest score across all categories, indicating dealers are largely satisfied with the quality, reliability and range offered by OEMs.

Rahul Sharma, Director and COO, PremonAsia, said, "close to two-thirds of dealer sentiment is shaped by after-sales service and viability factors. While after-sales service is the most important factor, Business and viability remains a key concern for dealers. Dealers cited issues such as buyback/write-off of unsold inventory, training cost-sharing arrangements and margins on vehicles and spare parts.”

Dealer satisfaction improved in the 2-wheeler segment compared to the previous year, but it declined in the 4-wheeler Mass Market and Commercial Vehicle segments. Vigneshwar stated that while the industry is performing well on product quality, structural issues like buyback policies, training costs and dealership viability cannot be ignored.

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The Society of Indian Automobile Manufacturers (SIAM), the apex body representing automakers in the country, has announced the wholesales for August 2025.

The automotive industry saw a total of 2.23 million vehicles sold last month, which was 5 percent higher than, 2.13 million units sold for the same period last year.

In fact, barring the passenger vehicle segment, almost all segments were in the green. The passenger vehicle with sales of 321,840 units, was down 9 percent, on the back of inventory correction and automakers recalibrating dispatches as the recent reduction in Goods & Services Tax (GST) comes into effect starting 22 September.

The three-wheeler segment reported its best-ever sales performance for August with a total of 75,759 units being sold, which was 8 percent higher YoY.

The two-wheeler segment reported a healthy 7 percent growth with a robust 1.83 million units sold, which includes 1.10 million motorcycles (+4 %) and 683,397 scooters (+13 percent).

Rajesh Menon, Director General, SIAM said, “Sales of passenger vehicles in August 2025 de-grew by (-) 8.8 percent, posting sales of 3.22 lakh units as compared to August of previous year, primarily due to recalibration of dispatches by passenger vehicle manufacturers. Three wheelers posted their highest ever sales of August in 2025 of 0.76 lakh units, with a growth of 8.3 percent as compared to August 2024. Two-wheeler segment grew by 7.1 percent in August 2025, as compared to August 2024, with sales of 18.34 lakh units. The landmark decision of government of India to reduce the GST rates on vehicles will go a long way in enabling broader access to mobility and inject fresh momentum into the Indian automotive sector in the upcoming festive season.”

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India’s automotive leadership used Society of Indian Automobile Manufacturers' 65th Annual Convention to signal continuity on emissions and safety policy, a pragmatic push on biofuels and electrification and a growing dependence on software-defined vehicles, while framing exports and supply-chain resilience as medium-term priorities.

Prime Minister Narendra Modi, in a special message, said India must achieve “true self-reliance across the entire automotive manufacturing value chain,” adding that “as the nation advances towards global leadership in green and smart transportation, opportunities for investment and collaboration are immense.”

Union Road Transport and Highways Minister Nitin Gadkari said, “We will maintain global alignment on BS7 and CAFE norms to address air pollution issues,” linking the shift to alternative fuels with macro-objectives: “Moving to biofuels helps in reducing India’s crude imports and enhances farmer incomes.”

He added, “For those aiding road accident victims, INR 25,000 will be awarded to Rakshaveers,” alongside ‘insurance up to 150,000 to accident victims,’ while stating that public campaigns and NGO engagement are ‘essential to improve human behaviour to prevent accidents.’

Gadkari also said logistics costs would ‘come down to single digit by year end,’ and cited scrappage progress with ‘more than 300,000 vehicles’ dismantled to date.

Industry capacity and localisation

Union Minister of Heavy Industries and Steel H. D. Kumaraswamy said the production-linked incentive scheme has drawn ‘more than INR 295 billion of capital investments,’ and that the steel ecosystem is working on ‘developing specialised steel for the auto sector to reduce its import dependence.’

Tarun Kapoor, Adviser to the Prime Minister, urged industry to partner with the Anusandhan National Research Foundation and to scale ‘biofuels, gaseous fuel and electric mobility’ and compressed biogas, while ‘working towards enhancing presence in global markets.’

Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries, noted government support to the EV ecosystem since 2015, the installation of ‘8,900+ public chargers’ and ‘around 10,900 e-buses,’ and called for investments in electric heavy vehicles.

Software-defined vehicles and AI

Rajan Wadhera, Member, SCALE Committee and former SIAM President, chaired the session on software-defined vehicles, where Dr Christopher Borroni-Bird, Founder, Afreecar (USA), said, “The path to SDVs is a major disruption for automakers.”

Dr Bird clarified distinctions between connected vehicles and fully software-defined platforms and noting rising software share in value.

A technology leader argued, “Generative AI is not simply another tool; it is a strategic enabler that is fundamentally shaping the Indian automotive sector, while acknowledging enterprise deployments are still early.”

Andreas Tschiesner, Senior Partner, McKinsey & Company, projected that “in 2035, we expect 30 percent of all produced vehicles will be built on zonal EE architectures, with cloud-managed development, AI-powered coding and virtual twins accelerating programmes.”

Exports, FTAs and supply chains

Rajesh Agrawal, Special Secretary, Ministry of Commerce and Industry, said, “India is now increasingly looking at integrating more with the world.”

He added, “We believe the next phase of growth, beyond a 4 trillion economy, will come through exporting to international markets and noting that India has signed FTAs with 27 countries.”

Sudhakar Dalela, Secretary (Economic Relations), Ministry of External Affairs, said, “the domestic market is robust but it is equally important for the auto industry to strengthen exports and diversify its supply chain, integrating into the global markets and value chains.”

SIAM President Shailesh Chandra, who is also MD of Tata Motors Passenger Vehicles and TPEM, pointed to ‘a record 5 million vehicles exported’ and called a recent UK FTA ‘a landmark,’ describing 20 percent export growth as ‘a powerful vote of confidence.’

OEM perspectives and next steps

Shenu Agarwal, Vice President, SIAM, and MD & CEO, Ashok Leyland, said commercial vehicles remain ‘pivotal for sustainable mobility,’ backing CNG and LNG in long-haul and ‘deep localisation of electric mobility.’

K. N. Radhakrishnan, Director & CEO, TVS Motor Company, highlighted ‘strong R&D momentum,’ progress on the circular economy and the need to ‘focus on developing local talent,’ adding, ‘The customer should remain at the centre of all decision making.’

Unsoo Kim, MD & CEO, Hyundai Motor India, said GST reforms have supported domestic manufacturing and rural demand and that AI will redefine mobility within enabling frameworks under Make in India.

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The Gurgaon-headquartered commercial vehicle major looks beyond just selling trucks and buses. The company’s focus on digitalisation and aftersales, it believes, is what the new-age customers need.

In the high-stakes world of commercial transportation, time is money – quite literally. Every hour a truck is off the road can mean missed deliveries, idle drivers, delayed shipments and unhappy customers. In India’s competitive commercial vehicle (CV) industry, the ability to minimise downtime and maximise uptime has become a critical differentiator for automakers.

For VE Commercial Vehicles, this principle has been elevated into a business philosophy. Over the past few years, the company has invested heavily in digital tools, predictive maintenance capabilities and an expanded service footprint to ensure that customers’ vehicles are running at peak performance for as many hours of the year as possible.

In an exclusive interaction with Motoring Trends, Ramesh Rajagopalan, EVP - Customer Service, Retail Excellence & Network Development, at VECV, shared his team’s work spans a network of over a thousand service points, a nationwide telematics backbone and a growing portfolio of uptime initiatives that integrate technology, training and process discipline.

Building a network

VECV’s current footprint exceeds 1,100 outlets across India, with an average of 10–12 new additions each month. This network covers the full range of commercial vehicles – from heavy-duty trucks and buses to light and small commercial vehicles.

The company’s growth is not limited to conventional CV outlets. The small commercial vehicle (SCV) network, particularly for electric models, is being built almost from scratch.

Rajagopalan revealed that the company is “working towards creating a network of exclusive dealerships for the newly launched Eicher Pro X, designed to deliver a premium, digitally enabled customer experience. These born-digital outlets will function as one-stop destinations offering advanced product customisation, EV-ready infrastructure and seamless access to connected services. With a focus on uptime, personalisation and convenience, the Pro X dealerships will redefine commercial vehicle retail by offering a car-like, modern environment tailored to the evolving needs of today’s fleet operators.”

“The starting point for us was to identify where we’re missing out – the ‘white spots’, where customers are already buying trucks and buses, but we aren’t present. The East and Northeast were clear gaps. We also looked at the service side: customers expect to have the nearest touchpoint for any service need, parts availability anywhere and 24x7 breakdown support,” he said.

These expectations are complicated by India’s rapidly evolving road infrastructure. With new expressways and freight corridors coming online, VECV has had to rethink its physical network, sometimes relocating facilities, other times adding new ones to stay close to high-traffic routes.

Telematics as the backbone of service planning

The decision to equip 100 percent of VECV’s BS6 vehicles with telematics was a strategic move made early in the transition to the stricter emission norms. The company shared that the BS6 trucks are far more electronically complex, with multiple sensors feeding real-time data on performance, emissions and potential faults.

Rajagopalan explained, “In BS6, any sensor failure that risks an emissions breach triggers a limp-home mode. That’s standard globally. But it can disrupt a customer’s operations if not handled quickly. We saw early on that predictive algorithms could identify error-code patterns that lead to breakdowns, allowing us to intervene before the vehicle stops.”

One example is AdBlue misuse – diluting diesel exhaust fluid with water, which can cause the vehicle to derate. Through telematics, VECV can detect the signs and remotely guide drivers on corrective steps, often via a quick video call.

This predictive maintenance model categorises alerts into three groups:

• Stop Now – requiring immediate action to prevent damage.
• Do It Yourself – where drivers can resolve the issue with guided support.
• Visit Soon – logged into the system so any VECV workshop can address it at the next scheduled service.

Measuring each minute

Digitalisation doesn’t stop at the vehicle. Every VECV workshop uses tablets to track a vehicle from the moment it enters the workshop, through job card creation, repair start and completion, invoicing and gate-out. Customers can see their vehicle’s status in real-time on display boards.

This transparency is more than cosmetic; it drives accountability. Every morning, operational teams review any vehicle that missed its promised delivery time, escalating cases that need additional support.

A recent initiative even monitors waiting times before work begins. If a loaded truck sits for more than an hour, the central control centre calls the dealer to find out why and get it moving. “For our customers, every minute is money. We can’t afford bottlenecks,” revealed Rajagopalan.

Retention in telematics

A common challenge in connected services is renewal beyond the complimentary period. VECV includes two years of telematics subscription with every vehicle and has kept renewal costs at about INR 6,000 annually.

In the early days, renewal rates were low. But targeted engagement – including onboarding every customer on the My Eicher app at delivery, monthly operating review meetings with large fleets and customised reports – has pushed renewal rates among big operators to 80–85 percent.

For smaller operators, overall renewal rates are about 35 percent, but with over 350,000 connected vehicles on Indian roads, the base is significant. VECV also addresses multi-device fatigue – where customers were earlier forced to install separate tracking units for clients or state mandates, by offering API integration, allowing its data to feed into external systems and avoiding duplicate hardware.

Perhaps the most distinctive element of VECV’s service model is its Uptime Centre, located at the company’s manufacturing plant. This facility operates 24x7, staffed with technical experts who can remotely diagnose issues, advise on repairs and escalate complex cases to R&D or manufacturing engineers.

If a problem can’t be resolved remotely within a couple of hours, specialist engineers, or what the company calls ‘flying doctors’, are dispatched to the vehicle location. The Uptime Centre also monitors parts queries, workshop performance and telematics alerts, ensuring that field teams have expert backup at all times.

Parts availability

Downtime isn’t just about repairs, but it is also about parts. To address this, VECV has identified 250 high-demand parts and mandated that every workshop keeps them in stock. If any of these parts is unavailable and not supplied within 24 hours, it is provided free of charge.

This guarantee is part of a broader spare parts strategy that includes decentralised stocking, demand forecasting based on telematics data and close coordination between dealers and the central supply chain.

With trucks and buses running more kilometres per year than ever – e-commerce trucks and long-distance buses reaching 200,000 km annually – service demand is growing even as reliability and service intervals improve.

To meet this, VECV has:

• 70 workshops operating round-the-clock, 365 days a year.
• Nearly 300 workshops running extended hours or double shifts.
• Training programmes to upskill technicians for faster, more accurate repairs.
• Investments in better workshop tools and equipment to boost productivity.

Dealers as partners in performance

Rajagopalan believes dealer capability is as important as infrastructure: “Today’s customers don’t tolerate delays. Delivery commitments that were acceptable in a week are now expected in hours. That pressure flows through the entire supply chain.”

VECV has put process discipline and transparency at the core of dealer operations. Every dealer is connected to the central system, with KPIs on breakdown response time, parts availability and repair turnaround. These metrics are published internally, creating healthy competition among regions to be ‘best-in-class.’

Rajagopalan shared his five strategic priorities or key focus areas –

1. Service Capacity Expansion – adding workshops, increasing working hours and boosting throughput per facility.
2. Competency Development – continuous technician training for faster, first-time-right repairs.
3. Parts Availability – maintaining high stock levels of critical components, backed by guarantees.
4. Predictive Maintenance Evolution – extending analytics beyond sensor data to wear-and-tear parts like clutches and brakes.
5. Telematics Insights – leveraging connected data for deeper operational recommendations to customers.

While much of VECV’s work is grounded in engineering and technology, Rajagopalan emphasises that the company’s philosophy is human-centred. “Our uptime promise is non-negotiable. Every innovation, whether digital or operational, is aimed at keeping our customers’ wheels turning. That’s how they earn and that’s how we build trust,” he said.

From a strategic perspective, VECV’s approach reflects an industry-wide shift. The CV market is no longer just about selling hardware; it’s about selling an ecosystem of services, digital capabilities and operational support – and backing it up with the speed and reliability that today’s logistics-driven economy demands.

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