Home  /  Case Study   /  Marketing strategy of Ashok Leyland
Unrealistictrends

Marketing strategy of Ashok Leyland

Ashok Leyland is an Indian multinational corporation established in 1951. It is the flagship company of the Hinduja Group and is currently headquartered in Chennai, India. It serves its offerings worldwide and has six subsidiaries to its name.

 

It is one of India’s leading vehicle manufacturers that offers a comprehensive range of small, medium, and heavy commercial, and passenger vehicles and is also a self-reliant unit, engaged in the business of manufacturing, assembling, and marketing commercial vehicles, automobiles all over the world.

 

It is a public limited company listed on the NSE and BSE in India.

Products of Ashok Leyland 

  1. Trucks
  2. Buses
  3. Light Vehicles
  4. Power Solutions
  5. Defence Vehicles
  6. Spares

 

SWOT ANALYSIS 

Unrealistictrends.com

Strengths of Ashok Leyland 

  • Spare Parts: Ashok Leyland provides services like spare parts, which ensure their customers have additional benefits for their vehicle maintenance, which increases the company’s sales.
  • Bus Segment: Ashok Leyland for bus sales globally comes under 3rd position. Company buses sales most part comes from State Transport Undertakings biddings because of this reason there is good growth in the company’s bus business.
  • Persistent Product Portfolio: The company’s significant revenue comes from medium and heavy commercial vehicles like trucks, light commercial vehicles, and buses from export. Other than these segments, the company supplies defensive vehicles to the Indian Army.
  • Strong Manufacturing Capability: The strong manufacturing facilities of Ashok Leyland have spread all over India. It also has amenities in the UK, Czech Republic, and the UAE. It helps the company to maintain economies of scale.


Weakness of Ashok Leyland

  • Interest Rates on Loans: Ashok Leyland has its subsidiary ‘Hinduja Leyland Finance’ provide loans to their customers. High interest rates lower commercial vehicle sales because people avoid buying big commercial vehicles.
  • Financial Analysis: Company borrowings have seen a significant increase from the financial year 2019 to 2020. Company EBITDA faced a downfall due to a decrease in sales from 2019 to 2020 causing net profit to decrease.
  • Market Share: Ashok Leyland strategy is straightforward. They stick to the same plan and do it very well, but Ashok Leyland’s problem is that their market share is not as substantial as TATA Motors, so they need to improve their market share. That is the first big thing.


Opportunities for Ashok Leyland

  • Economic Condition: Good economic conditions will increase the demand for goods and commercial vehicles because commercial vehicles are used for transportation. Thus, Ashok Leyland has opportunities to increase its sales.
  • Capital Incentives: Ashok Leyland is a capital intensive company. They have to spend so much wealth for expansion. Ten years forward, the company’s situation can become very strong.
  • International Markets: Ashok Leyland must capture the global markets adequately. They do not have solid international markets near borders. Once they start making their demands or making their needs strong at this pace, their sales will increase rapidly.
  • Electric Vehicles: Ashok Leyland company should start focussing on manufacturing electric vehicles because Delhi Government has observed that in the next 6-7 years, public transports will be electric vehicles. If this happens, Ashok Leyland will take a significant advantage because they are Delhi’s top-selling commercial and shared vehicles. And that is how they will improve their books.


Threats for Ashok Leyland

  • Economic Condition: The rise in diesel prices and lockdown due to Covid 19 affected India’s economy, which led to a decrease in demand for goods and commercial vehicles and hence a decline in the growth of the retail sector.
  • Government Norms Affecting Sales: In the financial year, 2020, a 54% drop in domestic sales was observed because of an adverse effect due to changes in standards by the government, e.g. vehicles can increase load capacity, so it also affects sales.
  • Government Rules: According to government rules, companies need to follow BS6 emission norms which lead Ashok Leyland to sell all their old BS4 vehicle inventories. Ashok Leyland offered significant discounts to sell their BS4 stocks.
  • Competitors: Tata motors has outstanding market shares in the truck, LCV and Bus segments in the domestic market. Because of which the company Tata Motors give tough competition to Ashok Leyland.

Strategy

Lets discuss about various types of Marketing strategy adopted by Ashok leyland

  1. Product Strategy
  2. Price Strategy
  3. Place & Distribution Strategy
  4. Social media Strategy 

 

Product Strategy of Ashok Leyland

Ashok leyland manufacture a huge segment of vehicles ( small,mid and large) . This huge segment line allows customers to pick perfect choice according to their requirements.  They produce  personal , commercial and Defence sector vehicles that makes him stand strong among his competitors

 

Price Strategy of Ashok Leyland

Due to its high vale driven policy they are performing los of research  and development to ensure high safety and quality for all kinds of vehicles. Due to their high standard price they are more focusing on quality rather than quantity which means a customer is getting better quality as compared to their competitors . Which means Ashok leyland vehicles require less maintenance and longer life span

 

Place & Distribution Strategy of Ashok Leyland

Ashok Leyland intelligently placed their vehicle segments to International sector also. So their strong presence is not showcasing only in India but also overseas like UAE, UK ,Sri Lanka etc. And if talking about Indian sector they have strong presence in Maharashtra,  Tamil Nadu,  Uttarakhand, Hosur, Rajasthan.

 

Social Media Marketing Strategy of Ashok Leyland

Ashok Leyland has a wide social media presence. They are present on all major social media platforms which include Twitter, Instagram, Facebook, and YouTube. They frequently release videos related to the company from financial performance analysis to campaign videos to connect well with their stakeholders and customers.

 

Current share market Analysis of Ashok Leyland

Unrealistictrends

Ashok Leyland has built itself a niche in the Indian commercial vehicle business. Its name is widely recognized pan-India and globally. They keep a very close eye on their competitors on the business fronts. However, on the digital fronts, it needs to figure out its social media marketing plan to create a strong overall digital presence which will help them in maintaining trust, recognition, and a strong brand reinforcement in the minds of customers.

The company has a bright future ahead in the commercial vehicle industry and this company has already made plans according to future requirements and demands of the customers. They are also creating new models and designs according to a new trend that will prevail over the markets across the world.

Ashok Leyland 5 yeears share Price chart analysis.

Image source 

 

Ashok Leyland Share Price Chart

Ashok Leyland Share Price in last 5 yeas consistent growing in March 2020 its was INR 43. Now in march 2025 it is INR 209. According to analysis, Taking into account both their development goals and key relationships within India as well as global commercial vehicle industry expansion. Ashok Leyland share price will increase in coming years and its a golden  time for investors to buy good share of company

Ashok Leyland Ltd has long been recognized for their dedication and expertise in manufacturing commercial vehicles for India’s transportation infrastructure, while meeting customer needs and adapting to ever-evolving industry demands.

 

By creating an account you are accepting our Terms & Conditions