Ashok Leyland Lines Up New Commercial Vehicles, Buses, and LNG Models for Product Expansion

Chennai-based commercial vehicle manufacturer Ashok Leyland has announced plans for a major product expansion across multiple segments, including tippers, tractor-trailers, buses, and LNG models. The company is also scaling up its bus manufacturing capacity and expanding its electric mobility operations through Switch India and OHM.

CHENNAI — Commercial vehicle manufacturer Ashok Leyland is preparing for a product expansion across several segments for the remainder of the year, according to Managing Director and CEO Shenu Agarwal.

Addressing analysts on Tuesday, Agrawal stated that the company plans to enter the 280 hp, 320 hp, and 360 hp tipper segments. In addition, Ashok Leyland will launch new tractor-trailers and multi-axle vehicles featuring higher peak power and torque, heavy-duty aggregates, and a range of premium features.

In the bus segment, the company is strengthening its market presence with an upgraded 13.5-metre offering and an all-new 15-metre vehicle. Ashok Leyland also plans to debut liquefied natural gas (LNG) commercial vehicles later this year, alongside a bi-fuel light commercial vehicle (LCV) targeted at demand in large metropolitan markets.

Meanwhile, the company's electric-mobility business is building its order pipeline. Switch India currently maintains an order book exceeding 1,500 buses, providing operational visibility for its electric bus operations. Additionally, the electric mobility-as-a-service subsidiary, OHM, is expanding its operating fleet. OHM currently operates over 850 buses, reporting a fleet availability of more than 98 per cent. The company noted that all gross-cost-contract projects currently under execution are generating healthy double-digit internal rates of return (IRRs).

Responding to stronger demand and an improving order pipeline, Ashok Leyland is focusing on increasing its bus manufacturing capacity. The company currently has a monthly fully-built bus capacity of approximately 950 units and is working to raise that figure to about 1,650 units.

Construction of the new bus plant in Lucknow is underway and is slated to become operational in the third quarter. Furthermore, the company is evaluating capacity expansion at its existing manufacturing facilities located in Alwar and Trichy.

"Ashok Leyland's strategic push into higher horsepower tippers, LNG models, and expanded electric bus manufacturing highlights a comprehensive approach to evolving market demands. By simultaneously scaling up production capacity—such as the upcoming Lucknow plant—and maintaining strong project economics in its EV subsidiary, the company is effectively balancing traditional commercial vehicle growth with future-ready mobility solutions. This capacity expansion provides clear operational visibility as demand strengthens." — Dr. Shishir Gupta, Founder & CEO, StartupLanes