Staff Writer
Chennai: Ashok Leyland, India’s second-largest commercial vehicle manufacturer, has clocked its twelfth consecutive quarter of year-on-year growth in the bus segment, solidifying its position as a leading player in the domestic passenger transport space. The sustained growth comes amid rising demand for public mobility solutions and renewed government focus on electric buses.
In the January–March quarter of FY25, the company recorded a 3% increase in bus volumes over the same period last year, continuing a trend of steady growth despite broader economic challenges. This performance was part of Ashok Leyland’s broader success story in FY25, where the company achieved record financial results across multiple segments.
Company officials attributed the bus segment’s momentum to strategic product upgrades, consistent demand from state transport undertakings (STUs), and a growing preference for high-quality, fuel-efficient buses in urban and inter-city transport.
Major Milestones and EV Breakthroughs
A standout achievement in FY25 was the bus division’s significant progress in electrification. Ashok Leyland launched India’s first 15-meter front-engine battery electric bus, marking a major milestone in its clean mobility roadmap. The company also fulfilled key electric bus orders and unveiled a battery-electric terminal tractor as part of its zero-emission fleet strategy.
Switch Mobility, Ashok Leyland’s EV arm, played a pivotal role in this transformation. The subsidiary posted double-digit EBITDA margins in Q4 and reached EBITDA breakeven for the full year. It now holds an order book of more than 1,500 electric buses, with several large-scale public transport tenders in the pipeline. Full-year net profitability for Switch is expected in FY26.
Tailored Growth and Market Focus
Ashok Leyland’s bus business has seen particular traction in customized product offerings for domestic and export markets. With increased localization and a keen focus on regional needs in markets such as SAARC, GCC, and Africa, the company’s international bus exports have gained momentum. Its flexible manufacturing capabilities have allowed it to deliver cost-effective and performance-optimized models in both diesel and electric formats.
The company also reported strong order flow from private fleet operators and educational institutions, especially in Tier-II and Tier-III cities, reflecting a recovery in institutional demand post-pandemic.
Sustainability and Social Impact
Reinforcing its commitment to sustainability, the bus segment is contributing significantly to Ashok Leyland’s ESG goals. The company reported 69% renewable energy usage in FY25 and has been ranked #1 globally in the “Heavy Machinery and Trucks” category by Sustainalytics.
Through its flagship CSR initiative, ‘Road to School’, many of the company’s buses are also being deployed in rural education programs, benefiting nearly half a million students across India.
Electrification and Rural Penetration
Looking ahead, Ashok Leyland is banking on government incentives and urban transport reforms to accelerate the shift to electric buses. FY26 will see the company expand its product range, especially in low-floor and mid-range electric buses, tailored for urban transit and intercity routes.
The company is also planning to deepen its rural penetration, with products designed for regional school, staff, and contract carriage services. Officials hinted at new model launches and potential collaborations with last-mile mobility operators to tap underserved routes.
With a strong product pipeline, robust financial backing, and a growing EV footprint, Ashok Leyland’s bus segment is poised to play a central role in shaping the future of sustainable public transport in India and beyond.