Ashok Leyland Managing Director and CEO Shenu Agarwal discussed the company's strategies and outlook in the Middle East. He highlighted how sustained oil strength could impact demand, costs, and future opportunities for the Indian commercial vehicle manufacturer. Agarwal also addressed the company's critical juncture in its Middle Eastern operations during an interview on "Insight with Haslinda Amin."
Despite challenges like rising diesel prices and disruptions from the West Asia crisis, Ashok Leyland sees resilient demand in the commercial vehicle (CV) industry. Replacement demand and lower ownership costs post-GST rationalization are contributing to positive market sentiment. Agarwal noted that while the conflict temporarily affected operations at its Ras Al-Khaimah facility in the UAE and created logistics bottlenecks, operations are gradually normalizing, with full capacity expected by June.
The company is also advancing plans to establish a manufacturing facility in Saudi Arabia, a significant step in its GCC expansion strategy. This new facility, with an initial capacity of at least 5,000 units annually, is projected to be operational within 18 to 24 months, complementing the existing UAE facility which serves Gulf and African markets. Ashok Leyland aims to increase its export volumes from over 18,000 units in FY26 to a medium-term target of 25,000 units.
Financially, Ashok Leyland reported its highest-ever annual revenue, EBITDA, and profit after tax in FY26, with revenue up 14% year-on-year to $5.28 billion (₹44,000 crore) and EBITDA exceeding $684 million (₹5,700 crore). The company has earmarked $96 million to $120 million (₹800 crore-₹1,000 crore) for capital expenditure in FY27, focusing on electric vehicles, new technologies, and battery manufacturing.
