Ashok Leyland wins truck orders for the military worth Rs 800 crore - Broadsword by Ajai Shukla - Strategy. Economics. Defence.

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Monday 17 July 2023

Ashok Leyland wins truck orders for the military worth Rs 800 crore

This year's military transportation budget allocates Rs 6,717 crore for revenue expenditure, and Rs 4,038 crore for capital expenditure


By Ajai Shukla

Business Standard, 18th July 23


Ashok Leyland, the Indian flagship of the Hinduja Group and the largest supplier of logistics vehicles to the Indian military announced on Monday that it had won major orders for defence vehicls, valued at INR 800 crores.


The contracts awarded to Ashok Leyland include for the production of “field artillery tractors” (FAT 4x4) and “gun towing vehicles” (GTV 6x6).


The FAT 4x4 and GTV 6x6 are specialized vehicles employed by the artillery for towing light and medium guns, respectively. 


Both these platforms featured prominently in the first “positive indigenization list” that the government promulgated in August 2020.


This was followed in May 2021 by a second positive indigenisation list, comprising of 108 items; and then a third indigenisation List of 101 items in April 2022. 


Ashok Leyland vehicles, especially the 7.5 tonne Stallion, have formed the backbone of the army’s logistics supply chain since the Kargil conflict in 1999. They are manufactured for the military in a dedicated production line in Ordnance Factory Jabalpur.


The budget component for military transportation this year allocates Rs 6,717 crore for revenue expenditure. In addition the budget caters for Rs 4,038 crore in capital expenditure.


"We are immensely proud to have secured these orders from the Indian Army. The defence business has been a strong pillar of growth for us, and this win… is a testament to our firm commitment to providing advanced mobility solutions for our armed forces,” said Ashok Leyland CEO, Shenu Agarwal.


“We have been a leading example of ‘Atmanirbhar Bharat’ by developing mobility platforms ranging from 4x4, 6x6, 8x8, 10x10 & 12x12 for various applications and operational requirements of Indian armed forces.  These platforms are indigenously designed, developed and manufactured by Ashok Leyland and contribute significantly towards import substitution. 

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