Ashok Leyland, the flagship of the Hinduja Group, has reinforced its position in India's defence mobility sector by securing multiple orders worth over ₹700 crore. These contracts will support troop transportation, logistics, and specialised mobility requirements under the Close-in Weapon Systems (CIWS) programme.

In an exchange filing, Ashok Leyland confirmed that the contracts include a diverse range of vehicles, such as:

• Stallion 4x4

• Stallion 6x6

• Short Chassis Bus

• Mobility System Travelling Platform

This achievement cements Ashok Leyland’s role as a key supplier of advanced land mobility solutions for the Indian Armed Forces and Paramilitary Forces.

Leadership's Perspective on Defence Growth

Shenu Agarwal, MD and CEO of Ashok Leyland, expressed pride in the company’s long-standing partnership with the defence sector.

"For decades, Ashok Leyland has been a trusted partner in defence mobility. We are immensely proud of these new orders, which reaffirm our leadership in the sector and commitment to providing cutting-edge solutions for the armed forces."

Amandeep Singh, President – Defence Business, further highlighted that Ashok Leyland has a strong pipeline of future defence orders and tenders, ensuring continued business growth.

Promoter Stake Pledge and Market Impact

In a separate exchange filing, one of Ashok Leyland's promoters disclosed that it has pledged nearly 30% of its holdings, valued at over ₹6,400 crore, given the stock's current market levels. As of December 31, 2024, Hinduja Automotive held a 35% stake in the company.

Despite the defence contract win, Ashok Leyland shares dropped 0.47%, trading at ₹207.54. The stock has fallen 7% year-to-date, reflecting broader market conditions and concerns over recent business developments.

Ashok Leyland to Shut UK EV Unit of Switch Mobility

Amid these developments, Ashok Leyland announced the closure of its Switch Mobility UK manufacturing and assembly unit. The decision stems from economic uncertainties and the slow transition to EVs in public transport across the UK and Europe.

The move signals a strategic shift in Ashok Leyland’s EV business, as it focuses on streamlining operations and prioritizing markets with stronger electric vehicle adoption rates.

Market Reaction and Future Outlook

Despite securing a major defence contract, the market remains cautious about Ashok Leyland’s long-term growth due to the stake pledge and EV unit closure. However, the company’s robust defence order pipeline could offset some of these concerns in the coming quarters.

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