Introducing Ashok Leyland
The second largest manufacturer of commercial vehicles in India, the fourth largest manufacturer of buses in the world, and the 19th largest manufacturer of trucks globally, Ashok Leyland is headquartered in Chennai.
A US$ 4.5 billion company with a footprint that extends across 50 countries, Ashok Leyland has a truck range covering anything from one to 55-ton Gross Vehicle Mass. Millions of passengers get to their destinations every day travelling on nine-to-80-seater Ashok Leyland buses. The Ashok Leyland product portfolio also includes diesel engines for industrial, genset and marine applications.
In 2021, the company sold slightly over 100 000 vehicles, well short of its 2019 sales of close on 200 000 (Covid has been blamed for the reduction in sales). More recently, as at the end of June 2022, it has sold 39 651 commercial vehicles (domestic sales and exports combined) on a year-to-date basis, up 120% versus the same period last year when it sold 17 987 units. The brand is not unfamiliar to South African transport operators; it has traded in this country before.
Meet ETG Logistics
ETG Logistics (ETGL) operates an established automotive and farm equipment distribution business in South Africa, Namibia, Zimbabwe, Lesotho, Swaziland, Botswana, Tanzania, Zambia, Mozambique and Kenya with plans to increase its footprint in East and Southern Africa, amongst other regions. Its product range includes Belarus Minsk Tractors (62kW to 333kW), VST Tractors & Power Tillers (9kW to 18kW Tractors and Power Tillers), Shaktiman Implements, TGB Quad Bikes and TVS Motorcycles.
ETGL will operate dealerships for Ashok Leyland in six key Southern African countries – South Africa, Mozambique, Zambia, Namibia, Swaziland, Botswana and Lesotho – as part of this strategic cooperation.
Diverse range on offer
According to Pavan Nair, Business Head, ETGL Distribution, a diverse range of Ashok Leyland vehicles will be on offer in Southern Africa. “The initial range planned for the Southern African market will consist of models competing in the light, medium and heavy commercial vehicle segments as well as the bus market.
“The Ashok Leyland Phoenix light truck offers a cab-forward design with a GVM of less than 3,5 tons and a load capacity of approximately two tons. It is therefore possible to drive this vehicle with a normal Code EB driver’s license.
“Next in the model line-up are the Ashok Leyland Partner, Boss and Cargo 4x2 forward control freight carriers with payloads in the five to 20-ton range. ETGL will be supplying chassis cab models to the market and various load body configurations will be available through approved local suppliers. A range of buses with seating capacities ranging from 31 to 63 will also be available to the local market,” he reveals.
Homologation is currently in process and the first units will be available for retail in Q3 2022.
More success next time around?
Of course, this is not the brand’s first attempt at cracking the competitive South African market. Why should it be successful this time around? Nair says he cannot speculate on the market performance of previous distributors. “But it is worth mentioning that customers like bus companies and some government departments did buy several Ashok Leyland units in the past. At that time, the core business was focused on the commercial fleet and special purpose vehicles with some retail sales being realized. This business and supply were mostly done from India.
“With ETGL taking over the distribution responsibilities, the focus has now changed to retail sales. ETGL forms part of the Export Trading Group (ETG), a diversified company with a history of over 50 years of trading in various segments including transport and logistics and with headquarters in Sandton, Johannesburg. As an example, the group already operates a fleet of over 1 000 trucks throughout Africa and operates seven bulk carrier ships.”
As part of its mobility solutions, ETGL has now added bakkies, trucks, and buses to add more value to its model offering. “ETGL already distributes a range of agricultural machinery and automotive products throughout Southern Africa, and it therefore makes commercial sense for the company to expand its product offering to include commercial vehicles. An experienced staff complement with a rich history in automotive engineering, product planning and development, marketing as well as wholesale and retail experience provides the required knowledge and skills set to guide dealers to commercial success,” Nair notes.
Built for Africa
He contends that the products will be successful because they’re built for tough markets – like Africa. “Ashok Leyland is known for its toughness and durability and obviously becomes the best fit for our conditions and market requirements,” he points out.
At the announcement of the distribution agreement between Ashok Leyland and ETGL, Amandeep Singh, Head International Operations at Ashok Leyland, concurred: “We have ambitious growth plans for the African market. Our time-tested products are well suited for the African terrain and offer a superior value proposition to customers. ETG group’s extensive connections in these markets will complement our growth plans. We are already present in most of the East and West African countries. We now have the right product portfolio with best-in-class TCO to cater to requirements of this market and provide an excellent value proposition for customers.”
Local assembly on the cards?
Initially, the model range will be imported. However, ETGL is already studying the feasibility of changing over to local assembly in two to three years.
