Ashok Leyland becomes India’s EV leader due to Gopichand Hinduja’s strategy

New Delhi. Hinduja Group Chairman Gopichand P Hinduja died on 4 November 2025 at the age of 85. He breathed his last in London. Gopichand Hinduja became the chairman of the company 2 years ago in 2023. But he had earned his name about 40 years ago. When he breathed life into a dying company. In 1987, when the British company ‘Ashok Leyland’ was preparing to exit India, the company was almost on the verge of collapse. The old engines of the factory, slow production speed and declining sales had worsened the condition of the company. At that time no one had thought that one day this company would become India’s second largest commercial vehicle manufacturer. But what Gopichand Hinduja saw was not visible to anyone else.

In 1987, British Leyland wanted to exit India. Ashok Leyland’s factories ran only old engines (1948 models), the annual production was barely 3,000–4,000 vehicles and losses were continuously increasing. Tata dominated the market, while Leyland was limited to South India only. At the same time, Gopichand Hinduja took over the reins of the company by purchasing 26% of it and from here began the “rebirth of Ashok Leyland.”

Gopichand’s 5-Step Master Strategy

• Immediate investment and balance sheet cleaning – Capital investment of more than ₹100 crore was made between 1987 and 1990. Machines were replaced, plants were modernized (Ennore and Hosur) and debt was reduced. This strengthened the foundation of the company.
• Technology Partnership – With Iveco – Joint venture with Iveco (Fiat), which launched the ‘H-Series’ engine in 1990. This engine gave more power with less fuel. India’s first CNG bus was also manufactured by Ashok Leyland in 1997.
• 10 times increase in production – While only 4,000 vehicles were manufactured in 1987, this number increased to 40,000 in 1995 and more than 1 lakh in 2007. New factories were opened in Alwar, Pantnagar and Bhandara.
• Expansion from India to the world – Leyland started exporting vehicles to Sri Lanka, Bangladesh and the Middle East. Today the company is present in more than 50 countries. It has become the world’s third largest bus company and tenth largest truck company.
• Innovation and EV Revolution- In 2016, the company launched the first electric bus (Circuit). In 2020, India’s first modular truck was made under the AVTR platform. LNG trucks were launched in 2024 and a target of net-zero carbon by 2040 was set.

3 mantras of Gopichand

• Technology is the future – it is necessary to bring a new engine and new technology every 5 years.
• Make India global – increasing exports, opening foreign partnerships and outsourcing plants.
• Employees = Family – Providing training and security to every worker, creating long-term jobs.

His biggest step was to buy 30% of Iveco in 2007 and take complete control of the company. This completed the real transformation of the company.

Today’s Ashok Leyland – Legacy of Gopichand Hinduja

Today Ashok Leyland is the second largest commercial vehicle manufacturer in India after Tata. The company is considered the world’s third largest bus manufacturer and India’s EV leader. More than 1,000 electric buses are running in the country and more than 50,000 vehicles have been supplied to the Indian Army so far. Gopichand Hinduja used to say, “Ashok Leyland was not to be saved, it was to be built. We did not just invest money, we invested a dream.”