Ashok Leyland Secures ₹700 Crore Defence Orders

29 Mar 2025 , 05:26 PM

Ashok Leyland, the flagship firm of the Hinduja Group has bagged defence orders worth more than ₹700 crore recently, cementing its position in the defence mobility segment. The newly awarded contracts will help enable troop transportation, logistics and other specialized mobility requirements in support of the Close-in Weapon Systems (CIWS) programme.

The contracts include a variety of vehicles such as Stallion 4×4, Stallion 6×6, Short Chassis Bus, Mobility System Travelling Platform etc. Shenu Agarwal, MD & CEO, Ashok Leyland said, “The defence business is a key pillar of Ashok Leyland’s long-term growth strategy and we reaffirm our commitment to delivering advanced mobility solutions for Armed and Paramilitary forces of the Indian Army.”

“We have built a strong pipeline of defence orders encompassing several sectors along with upcoming tenders, which will help drive our presence in the defence sector,” said Amandeep Singh, President.

Its own promoters recently revealed in an exchange filing that, around 30% of its ownership in Ashok Leyland is committed (in a pledge). At the current market capitalisation of Ashok Leyland, the pledged stake is valued at over ₹6,400 crore. Hinduja Automotive owned 35% in Ashok Leyland as of December 31, 2024.

Ashok Leyland has confirmed that it will shut down its EV arm Switch Mobility’s manufacturing and assembly unit in the UK. The closure is due to economic uncertainties and the slower-than-expected transition to electric vehicles (EVs) in public transport in the UK and Europe. The decision was attributed to difficult market conditions and strategic realignment, the company said.