Commercial vehicle giant Ashok Leyland bucked the industry trend of slumping exports, maintaining volumes over the past two years, said MD & CEO Shenu Agarwal. The key, according to Agarwal, was a strategic shift in focus towards new markets in the Middle East and Africa.
Speaking on the sidelines of the Bharat Mobility show in Delhi, Agarwal highlighted that the exports have been witnessing a lot of headwinds over the past couple of years. The situation is particularly critical in neighbouring countries such as Bangladesh and Nepal, where demand has dipped by as much as 50%. A similar situation exists in Sri Lanka, where the demand has dried up.
“But if you look at Ashok Leyland’s performance, while most of our peers have gone down in their export volumes, we have been able to maintain our volumes,” said Agarwal. He attributed it to the company recalibrating its export strategy by looking to focus on other markets like those in Middle Eastern countries and Africa, where the demand continues to remain robust. For instance, in Africa, Ashok Leyland has moved its focus not just on institutional or government purchases but also into the retail sector, he added.
Ashok Leyland’s export volumes stood at 8,251 units during the first nine months of FY24, which is almost on similar levels as that of last year. Exports form about 5% of the company’s total turnover.
In international markets, during FY23, Ashok Leyland added distributors in 12 countries and launched five new products and their variants. It now has presence in over 25 countries in Africa for retail market operations. The Chennai-based company further introduced LCV products, both in right-hand drive and left-hand drive, in African and GCC markets, which helped it make significant inroads in the goods segment.