Ashok Leyland domestic sales down 11% in October amid market headwinds

Commercial vehicle manufacturer, Ashok Leyland witnessed an 11% decline in total domestic sales in October, with volumes dropping to 14,067 units from 15,759 units in October 2023.  The company reported a 9% decline in total sales, with overall volumes falling to 15,310 units compared to 16,864 units in the same month last year.

The company's performance reflects broader challenges in the commercial vehicle sector, though certain segments show promising resilience.

The Medium and Heavy Commercial Vehicle (M&HCV) segment, traditionally a strong contributor to the company's performance, saw mixed results. While M&HCV truck sales declined by 13% to 7,208 units, the bus segment showed encouraging growth of 8%, reaching 1,229 units. This indicates an increase in demand for public transportation as educational institutions and corporate offices continue their return to normal operations.

The Light Commercial Vehicle (LCV) segment also faced headwinds, with domestic sales declining by 11% to 5,630 units compared to 6,348 units in the previous year. This decline reflects the ongoing challenges in last-mile delivery and small business segments, which are still adapting to post-pandemic market dynamics and inflationary pressures.

Export performance mirrors domestic trends, with total exports included in the overall sales figures showing modest variations. The company's total domestic plus export figures for M&HCV buses showed a notable increase of 13% to 1,953 units, highlighting the growing international demand for public transportation vehicles. However, both M&HCV trucks and LCV exports remained under pressure, contributing to the overall decline in numbers.

In April-October 2024, total sales (domestic + exports) showed a 3% decline at 104,827 units compared to 108,039 units in the same period last year. The bus segment stands out with domestic sales growing by 35% to 11,473 units.

The commercial vehicle industry has been facing multiple challenges, including high fuel prices, tighter financing conditions, and ongoing economic uncertainties. However, analysts remain optimistic about the sector's medium-term prospects, citing government infrastructure projects, replacement demand, and the gradual revival of economic activities as potential growth drivers. Ashok Leyland, with its diverse product portfolio, continues to adapt to these changing market dynamics while maintaining its focus on sustainable growth strategies.