Marketing Mix Of Ashok Leyland and 4Ps (Updated 2025)

The Marketing mix of Ashok Leyland analyses the 4Ps of Ashok Leyland’s marketing strategy, which includes the Product, Price, Place, and Promotion of Ashok Leyland. Ashok Leyland is a public company belonging to the Hinduja group and was founded in 1948 by Mr. Raghunandan Saran. In India, they are the 2nd largest manufacturer of commercial vehicles with a turnover of more than US $ 2.5 billion. The company is based in Chennai, Tamil Nadu. Ashok Leyland has various subsidiaries which operate across the world.

The company has excellent international competence and currently stands as the 4th largest manufacturer of buses in the world. The current CEO is Mr. Vinod K Dasari. Although it is in a well-established position in the automotive business, Ashok Leyland has some competitors across various product segments. It has tough competitors, Tata Motors, Daimler AG, Volvo, Eicher Motors, Maruti Suzuki, etc.

About Ashok Leyland

• Type: Commercial vehicle manufacturer
• Industry: Automotive
• Founded: 1948
• Founder: Raghubir Singh
• Headquarters: Chennai, India
• Area served: Worldwide
• Key people: V. Sumantran (Chairman) and Vinod K. Dasari (CEO)
• Number of employees: 56,000

Ashok Leyland Product Strategy

The products manufactured by Ashok Leyland fall under these broad categories.

1. Buses: Passenger buses with a capacity of 19-80 seating seats. The flagship BEST buses and double-decker buses in Mumbai and the Ibus are the products of Ashok Leyland.
2. Trucks: primary focus on 16–25-ton range of trucks, with presence in all segments from 7.5 tons to 49 tons. Axle lorry with custom-built cabins is very popular in this segment.
3. Light, medium, and heavy commercial vehicles for various industrial and transport utilities are made by Ashok Leyland.
4. Defense: Road-mobile launchers, protection armored vehicles, army trucks, etc, are the flagship products in this segment.
5. Power Solutions

The Product Mix of Ashok Leyland in 2023 is as follows (Source)

1. Medium and Heavy Commercial Vehicles (MHCVs): Trucks: Ashok Leyland manufactures a wide range of trucks, including cargo trucks, tipper trucks, and specialized trucks for various industries such as construction, logistics, and mining. Tractors: The company produces tractor-trailer combinations for long-haul transportation. Multi-Axle Vehicles: Ashok Leyland offers multi-axle vehicles designed to carry heavy loads and operate efficiently on challenging terrains. Buses: Ashok Leyland manufactures city buses, intercity buses, and luxury coaches for public transportation and private travel.
2. Light Commercial Vehicles (LCVs): Mini Trucks: Ashok Leyland produces small and efficient mini trucks suitable for urban and last-mile deliveries. Light Trucks: These vehicles are designed to carry lighter loads over shorter distances, catering to urban and suburban logistics.
3. Electric Vehicles (EVs): Ashok Leyland has ventured into the electric vehicle segment, offering electric buses and light commercial vehicles. These EVs are part of the company’s commitment to sustainable transportation.
4. Defense and Special Purpose Vehicles: Ashok Leyland manufactures a range of defense vehicles, including trucks, troop carriers, and logistics vehicles, catering to the defense and paramilitary sectors. Special Purpose Vehicles: The company designs and manufactures specialized vehicles for applications such as firefighting, airport ground support, and more.
5. Power Solutions: Ashok Leyland provides power solutions, including engines and gensets, used in various applications, including industrial, commercial, and agricultural sectors.
6. Spare Parts and Aftermarket Services: Ashok Leyland offers a comprehensive range of spare parts and aftermarket services to support its vehicles’ maintenance and repair needs, ensuring their continued performance.
7. Exports: The company exports its vehicles and components to international markets, contributing to its global presence.

Ashok Leyland Place Strategy

The products are exported to various countries like Ghana, Bangladesh, Sri Lanka, etc., and with various joint ventures in different countries, the brand Ashok Leyland has made a global presence. The central manufacturing units across India are in Ennore and Hosur (Tamil Nadu), Alwar (Rajasthan) and Pant Nagar (Uttarakhand). The units are highly specialized with well-trained technicians and engineers who ensure a flawless vehicle is delivered at the showroom and ensure proper after-sales service is provided to the customer.

Here’s a place strategy for Ashok Leyland in 5 bullet points:

1. Extensive Dealer and Service Network: Ashok Leyland has established a vast network of dealerships and service centers across India and key international markets. This widespread presence ensures customers convenient access to the brand’s commercial vehicles and aftersales services.
2. Dedicated Corporate and Fleet Solutions: The company offers specialized solutions for corporate clients and fleet operators. This includes customized product offerings, maintenance packages, and financing options tailored to the specific needs of businesses and large-scale vehicle fleets.
3. Export Presence: Ashok Leyland’s place strategy extends beyond India, with a significant focus on international markets. The company exports its commercial vehicles to countries across Asia, Africa, the Middle East, and beyond, often through partnerships with local distributors and dealers.
4. Digital Channels and Online Sales: Ashok Leyland utilizes digital channels, including its official website, to provide information about its products and services. While commercial vehicle sales often require in-person interaction, the brand’s online presence assists potential customers in researching and initiating contact with dealers.
5. Aftermarket Support: To ensure the continued performance of its vehicles, Ashok Leyland has strategically positioned service centers and authorized workshops. These facilities offer maintenance, repairs, and spare parts to support customers throughout the lifecycle of their vehicles.

Ashok Leyland Pricing Strategy

In the commercial vehicles segment, Ashok Leyland’s major competitor is Tata Motors. For example, Ashok Leyland trucks are in the price range of Rs 13 lacs and Rs 16 lacs in two variants. In contrast, similar trucks from international manufacturer Volvo are slightly higher in price at Rs 14.25 lacs and Rs 17.85 lacs.

As the trucks and buses have long usage lives, like 15-20 years minimum, what becomes essential is the maintenance cost, which can be minimal if the product quality is good. So automotive manufacturers like Ashok Leyland have slightly higher prices on the product than competitors, which assures you of quality and future savings on the maintenance aspect.

Here’s an analysis of Ashok Leyland’s pricing and distribution strategy:

1. Segmented Pricing: Ashok Leyland adopts a segmented pricing strategy, recognizing that its commercial vehicles cater to a wide range of customers and industries. The company offers pricing tiers based on vehicle type, capacity, features, and applications. This segmentation allows Ashok Leyland to address its customers’ diverse needs and budgets.
2. Value-Based Pricing: Ashok Leyland places a strong emphasis on value-based pricing. It aligns its prices with the perceived value that its vehicles provide to customers. Factors such as durability, reliability, fuel efficiency, and aftersales support significantly determine the value proposition. Premium features and technologies are reflected in higher pricing for specialized models.
3. Competitive Pricing: Ashok Leyland closely monitors the pricing strategies of its competitors within the commercial vehicle market. The company aims to attract and retain customers while maintaining its market share by staying competitive. Pricing decisions consider both the quality of its products and the pricing strategies of rival brands.
4. Bundling and Customization: The company often provides options for customization and bundling of features and services. Customers can choose from a menu of add-ons and configurations to tailor their vehicles to specific requirements. This approach enables Ashok Leyland to capture additional value and margin.
5. Volume-Based Discounts: Ashok Leyland may offer volume-based discounts or fleet management packages for corporate clients and fleet operators. These pricing incentives encourage bulk purchases and long-term partnerships, benefiting the company and its clients.
6. Total Cost of Ownership (TCO): Ashok Leyland often communicates the total cost of ownership to its customers. This approach considers the upfront purchase price and factors in operational costs, maintenance, and fuel efficiency over the vehicle’s lifespan. The company justifies its pricing for long-term customer savings by demonstrating a favorable TCO.
7. Transparency: Ashok Leyland maintains transparency in its pricing by providing clear information about vehicle costs, financing options, and total ownership expenses. This transparency builds trust with customers and helps them make informed decisions.
8. Promotional Pricing: The company periodically runs promotional pricing campaigns and offers discounts to stimulate demand, clear inventory, or promote specific models. These promotions can be targeted at seasonal trends or market dynamics.

Ashok Leyland Promotion Strategy

The brand’s image is built by years of hard work of thousands of employees delivering quality products in the automotive industry. But in this competitive world, a brand needs some other marketing strategies to expand, stay in the market, and protect market share.

After over six decades of business, Ashok Leyland named Mahendra Singh Dhoni the brand ambassador. For the first time, Ashok Leyland roped in some celebrities for their multimedia advertisement campaign across all markets, addressing all the segments. The rival company Volvo used a similar advertising strategy by getting golfer Jeev Milkha Singh to be its brand ambassador in India.

The values that the promoters have invested in the growth of the business are genuinely revealed by the patronage that Ashok Leyland has, and they genuinely reflect the son of the soil.

Some Recent Video ads and Print ads of Ashok Leyland are:

Ashok Leyland | Koi Manzil Door Nahin (Ad 1) – YouTube

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