Ashok Leyland

General overview

Ashok Leyland is an Indian multinational automotive manufacturer company, It

is owned by the Hinduja Group. Ashok Leyland is the second-major
manufacturer of commercial vehicles in India, the third-largest manufacturer
of buses in the world, and the tenth-largest manufacturers of trucks. It was the
first in India to present multi-axled trucks, full air brakes and innovations like
the rear engine and articulated buses. In 1997, the company launched the
country's first CNG bus, and in 2002 it developed the first hybrid electric
vehicle. Ashok Leyland has also launched a mobile emission clinic that operates
on highways and at entry points to New Delhi. The clinic checks vehicles for
emission levels, recommends remedies and suggestions tips on maintenance
and care. This work will help generate respected data and garner insight that
will guide further development. Ashok Leyland has ambitious plans for the
electric vehicle segment in the short to medium term. The company is also
working on a flash charge version of its electric buses. which tops up the
battery in seconds while passengers get on and off the bus.

Shareholding pattern
Mar-2021

Promoter -

Foreign 51.12%

Indian 0.00%

Total Promoter 51.12%

 Mar-2021

Non-Promoter -

Institutions 34.59%

Non-Institutions 13.47%

Total Non-Promoter 48.06%

Custodian 0.82%

Total 100.00%

Management of the company

Name Designation
R J Shahaney Chairman Emeritus
Vipin Sondhi Managing Director & CEO
Jean Brunol Director
Manisha Girotra Director
Jose Maria Alapont Director
Andreas H Biagosch Director
Name Designation
Dheeraj G Hinduja Chairman
Gopal Mahadevan WholeTime Director & CFO
Sanjay K Asher Director
Andrew C Palmer Director
Saugata Gupta Director

SWOT Analysis
Strengths
The leader in domestic market: Ashok Leyland had a strong market share (28.6%)
in the medium and heavy commercial vehicle segment in FY2015. It is the
2nd largest manufacturer of commercial vehicles in India, also it is the 4 th largest
manufacturer of buses in the world. Thus, the strong market position in different
domains gives the company a better brand image and wider customer base.

Strong product portfolio: Ashok Leyland has forayed into a various segment of

heavy, medium and light vehicles which includes buses, trucks, defence vehicles,
etc. The company also offers diesel engines for industrial, marine and generator
applications. The strong product portfolio expands the customer base and market
share.

Robust manufacturing capabilities: The strong manufacturing facilities of Ashok

Leyland has spread all over India. It also has facilities in the UK, Czech Republic,
and the UAE. This helps the company to maintain economies of scale.

Weaknesses
Heavily dependent on the domestic market: In FY 2015, Ashok Leyland generated
87.3% of its revenues from the domestic market. This makes it vulnerable to
any economic and political changes in the country. This gives an advantage to its
prime competitor Tata Motors which operates through a wider revenue base
geographically.

Termination of JV with Nissan: In 2016, a Japanese company, Nissan Motor

Company terminated the 3 JVs signed with Ashok Leyland, ending 8-year-old
business relationships. There were also lawsuits filed against each other creating
an unamicable atmosphere. Such instances can make the company weak as it
hurts the image of the company and also affects the financial condition as well
as operations.

Opportunities
Growing global automotive industry: The Global automotive industry has shown
constant growth in the recent years and thus creates an opportunity for Ashok
Leyland to grab upon. The company should focus on tapping the opportunities
created in the global market, especially in the emerging countries to take
advantage of the growth in the industry and with it expand its footprint over the
globe.
Expanding Product portfolio: With its focus on research and development, Ashok
Leyland should look forward to expanding its product portfolio like it has done in
the recent past by introducing different heavy and medium commercial vehicles.
This helps in expanding its market and provides a competitive edge.

Exports: Many of the competitors have become wary of Ashok Leyland as it as

entered exports of its products in a big way and a bright future is expected of
Ashok Leyland.

Threats
Intense competition: Ashok Leyland faces competition from companies
like Tata Motors, Mahindra & Mahindra, Eicher Motors, Marcopolo, etc. The
government has allowed 100% foreign equity ownership in manufacturing
vehicles industry which also leads intensifying competition.

Environmental Regulations: The industry is subjected to constant changes and up

gradation in the environmental regulatory requirements. The company has to
comply with regulations regarding emission levels, noise, safety and pollutant
levels. Such regulations increase compliance costs which could also affect
the pricing strategy of the company.

Volatility in supply affects profitability: Some of the important commodities used

in manufacturing automobiles, including steel, aluminium, copper, zinc have been
extremely susceptible to price changes in the recent years because of the supply-
demand difference. This affects the profitability of the company directly.

Competitive analyasis
Whenever we think of commercial vehicles, there are very few brands that
come to our mind. In today’s case study we would talk about one such
automobile company, Ashok Leyland Limited.  On a global scale, it is the 4th
largest bus-maker and 12th largest truck-maker. Amongst all the
manufacturers of heavy vehicles in the world, completely different but with a
similar category to each other, Ashok Leyland is one of its kind.
In this case study, we will examine the marketing mix of Ashok Leyland, its 4Ps
of the marketing mix, its marketing strategies, and competitive analysis on its
digital presence, along with few suggestions to work upon to maintain a
unique edge over its other competitors in the market.
Conclusion

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. And Ashok Leyland
provides Commercial Vehicles with World Class Technology that is relevant,
appropriate & affordable. In an Atmosphere that nurture’s Creativity &
Innovation, 1000+ Product development Team seeks to Harness and Adopt
Technology that provide value to Consumers as well as Safety and
Environmental Issue.