commercial vehicles – Artifex.News

Truck makers widen reach as freight spreads beyond big cities

admin — Sat, 26 Sep 2026 14:26:00 +0000

India’s commercial vehicle makers are looking beyond traditional transport hubs as freight activity expands into smaller towns and regional markets.

BharatBenz’s recent dealership launch in Supaul, Bihar, reflects this shift. The four-bay 3S (sales, service and spares) facility on NH-327A will serve Supaul, Araria, Madhepura and adjoining districts, with an annual service capacity of around 1,800 vehicles. Daimler India Commercial Vehicles (DICV) manufactures BharatBenz trucks and buses.

BharatBenz President and Chief Business Officer, Domestic Sales and Customer Service, Rajiv Chaturvedi said it is witnessing “strong momentum across smaller towns and emerging freight corridors” due to growth in manufacturing, agriculture, infrastructure, e-commerce and regional distribution networks.

Ashok Leyland is witnessing a similar trend, with freight movement becoming more distributed across markets, according to Sanjeev Kumar, President, M&HCV Division. Smaller towns are emerging as important logistics centres, supported by rural consumption, MSME activity, organised retail and sectors such as dairy, fisheries and agriculture.

Roads redraw freight map

Improved connectivity is driving this transition. India’s national highway network expanded from 91,287 km in March 2014 to 1,46,572 km by February 2026, while the share of highways with less than two lanes declined from 30% to 9%.

Better roads are reducing travel time, improving truck utilisation and connecting smaller production centres with larger consumption markets. A study cited by the Ministry of Road Transport and Highways found that highway projects implemented between 2014 and 2022 reduced transport time between factories and suppliers by 9.19% and between factories and customers by 4.93%. Access to agricultural mandis also improved by 7%.

For truck makers, this expansion creates a new challenge: ensuring that vehicles sold in smaller markets receive the same level of service support available in major cities.

Service differentiator

Commercial vehicle customers increasingly value uptime as much as the vehicle itself. A truck that spends less time in a workshop directly improves operator profitability.

BharatBenz is expanding through a mix of integrated 3S facilities, smaller 2S outlets and mobile service formats. It currently has over 430 touchpoints and plans to expand the network to 600 by 2030, with a focus on northern, eastern and northeastern India.

Ashok Leyland is following a similar strategy through dealerships, authorised service centres, mobile service vans and digital platforms. It added 108 medium and heavy commercial vehicle outlets in FY26, taking its M&HCV touchpoints to 1,159. The company aims to have a service point every 50 km.

However, smaller markets bring their own challenges. Lower vehicle density and limited workshop volumes can affect outlet viability. Manufacturers must balance network expansion with local freight potential and long-term demand.

Beyond the initial price tag

Truck buyers are increasingly looking beyond purchase cost and evaluating the complete ownership equation — fuel efficiency, uptime, service reach, financing, resale value and lifecycle returns.

This has pushed manufacturers to build wider ownership ecosystems. BharatBenz is strengthening support through genuine parts, diagnostics, roadside assistance and digital solutions such as Truckonnect.

Ashok Leyland has expanded initiatives including Project Dhruv for workshop digitalisation, an AI-enabled uptime centre and fleet management platforms. Its ecosystem includes around 1,200 workshops, 800 authorised spare outlets, more than 10,000 independent retailers and nearly 40,000 independent mechanics.

Published – September 26, 2026 07:56 pm IST

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Ashok Leyland posts record Q1 earnings but higher costs squeeze margins

admin — Fri, 14 Aug 2026 16:05:00 +0000

Ashok Leyland reported record revenue and profit for the June-ended quarter with revenue from operations rising 10% year-on-year to ₹9,634 crore and net profit climbing 3% to ₹609 crore.

However, higher commodity costs weighed on profitability, pulling the EBITDA margin down to 10.1% from 11.1% a year earlier despite record first-quarter commercial vehicle sales.

On a consolidated basis, which includes the group’s financial services businesses, revenue from operations rose about 12% year-on-year to ₹13,070 crore,profit before tax climbed 7% to ₹950 crore and profit after tax rose about 2% to ₹668 crore.

Chairman Dheeraj Hinduja, in a statement said, demand across key segments remained robust and that government initiatives such as Parivartan would accelerate fleet modernisation while strengthening the long-term growth prospects of the commercial vehicle industry.

The company reported its “highest-ever first-quarter” commercial vehicle sales of 48,763 units, led by strong growth in the light commercial vehicle segment. Medium and heavy truck sales also grew during the quarter, although bus sales were affected by state elections in key markets and the company’s decision to avoid unprofitable tenders, management said during the post-earnings briefing.

Exports declined to 2,461 units from 3,011 units due to disruptions caused by the conflict in West Asia. The company said overseas volumes have started recovering and expects international operations to perform better than last year.

The company said it plans to spend around ₹1,000 crore on capital expenditure in FY27, mainly on new product and technology development, while ruling out any immediate capacity expansion.

It also said Switch Mobility India, its electric bus business, is now financially independent. The Chennai-based auto major also proposed an investment of up to £25 million (around ₹325 crore) in Optare Plc, the U.K.-based holding company for the group’s electric mobility businesses, and said it will be used to repay loans and meet business requirements.

On the workforce front, management said Ashok Leyland employed about 30,000 people on its standalone rolls. Responding to questions on Artificial Intelligence (AI), the company said AI is being deployed across manufacturing, sales and after-sales operations to improve productivity rather than reduce headcount.

“Our first goal from deployment of AI is to increase our capability and effectiveness rather than reduce the headcount,” the company said, adding that AI tools are being used to strengthen workshop diagnostics, improve sales effectiveness and provide customers with greater transparency on vehicle health, repair costs and service processes.

Published – August 14, 2026 09:35 pm IST

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Daimler to invest ₹4,000 cr in TN; total India investments to touch ₹14,500 cr

admin — Thu, 13 Aug 2026 11:07:00 +0000

Bharat-Benz trucks displayed at its factory in Oragadam at Kancheepuram district
| Photo Credit: AP

Daimler India Commercial Vehicles (DICV) has proposed to make an additional investment of about ₹4,000 crore in Tamil Nadu, taking its total investment in the country to ₹14,500 crore.

The additional investment, which comes as part of its next phase of BharatBenz growth in India., is expected to support product development, manufacturing, research and development, infrastructure and future technology readiness, while creating approximately 400 jobs over the proposed period, DICV said in a statement.

The maker of BharatBenz trucks and buses, a wholly owned subsidiary of Daimler Truck AG, said the additional investment is being outlined under a “non-binding Facilitation Memorandum of Understanding (MoU)” signed with the Tamil Nadu government at the Tamil Nadu Investment Conclave.

Expressing confidence in the next phase of the country’s commercial vehicles growth; DICV Managing Director & CEO Torsten Schmidt said “as infrastructure, logistics, mining, construction and passenger mobility continue to expand, Indian customers need trucks and buses that deliver higher uptime, safety, reliability and operating efficiency. Through BharatBenz, we are strengthening products, localisation, service readiness and parts availability for India, while also reinforcing the country’s role as an important manufacturing and supply base within Daimler Truck’s global network.”

Since its market launch in 2012, BharatBenz has placed more than 2.2 lakh trucks and buses on Indian roads, serving a wide range of sectors, including freight transportation, construction, mining, logistics and passenger mobility.

DICV’s 400-acre integrated manufacturing and R&D facility in Oragadam, near Chennai, employs more than 4,000 people and is supported by over 400 local suppliers. According to the company, as much as 92% of the value of BharatBenz products is localised through its extensive Indian supplier ecosystem.

Published – August 13, 2026 04:37 pm IST

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Tata Motors to hike prices of commercial vehicles by up to 2% from July 1

admin — Wed, 19 Jun 2024 08:09:57 +0000

Tata Motors is a leading manufacturer of commercial vehicles, including trucks and buses, in India. File
| Photo Credit: P.V. Sivakumar

Tata Motors on June 19 said it will hike prices of its commercial vehicles by up to 2% from July 1, 2024 to offset the impact of rising commodity prices.

The price hike will be applicable across the entire range of commercial vehicles, and will vary as per individual model and variant, Tata Motors said in a statement.

Earlier this year, the company had announced a price hike by up to 2% from April 1, 2024 to offset the residual impact of the past input costs.

Tata Motors is a leading manufacturer of commercial vehicles, including trucks and buses, in India.

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