Ashok Leyland Sees M&HCV Industry Growing 5-7% in FY27

Ashok Leyland expects India's medium and heavy commercial vehicle (M&HCV) industry to grow 5-7% in the current financial year, supported by replacement demand, infrastructure spending and improving market conditions, a senior executive said.

M&HCV Growth Likely to Be in Single Digits This Year

"It has become a dynamic growth target these days. Every month, based on what is happening. But overall, I feel that we are looking at single-digit growth. Very difficult to give you a number. But yes, around 5-7%," said Sanjeev Kumar, president of the M&HCV division at Ashok Leyland.

Kumar said the market had started the year on a positive note. "Quarter 1 was very encouraging. I think we had some tailwinds in the beginning. But by the beginning of June, things settled, and the market has really picked up. So we are quite hopeful that even the second quarter should be better than last year's second quarter," he said.

He attributed the expected growth to replacement demand after the rationalisation of the goods and services tax last year, which encouraged fleet operators to renew ageing vehicles.

"Major growth driver would be replacement of old fleet. Of course, construction is doing very well. Government is spending money on infra. Private capex is also growing," Kumar said, adding that the commercial vehicle industry's fleet age remains high, creating demand for replacements.

Exports Recover After West Asia Headwinds

On exports, Kumar said the company had faced challenges due to the situation in West Asia, but conditions had improved. "There are a few challenges. But generally, we are hopeful," he said, adding that exports "kind of came back to normalcy in June."

As per SIAM data, domestic M&HCV volume during financial year 2026 was 3.74 lakh units. Sales grew marginally by 0.1% during the year. Exports, on the other hand, grew 27.6% to 23,251 units.

Ashok Leyland Launches India's First Air Suspension Truck Range

Ashok Leyland on Monday launched what it said is India's first range of air suspension trucks in Delhi, aimed at improving payload capacity and driver comfort in the multi-axle truck segment.

According to Kumar, the new range addresses a gap between existing 42-tonne and 49-tonne gross vehicle weight trucks by enabling a 46-tonne configuration.

"With this air suspension range, we could offer products between 42 to 49 tonnes... and that is where a 4-tonne advantage is available to customers now," he said.

Kumar said the additional payload could significantly improve fleet economics. "A 4-tonne advantage is a huge advantage for any customer... if you convert that into money, it is almost 5 lakhs," he said, adding that the higher purchase cost would be offset by increased earnings over the vehicle's operating life.

Besides increasing payload, the air suspension system is designed to improve ride quality by reducing vibrations. The trucks also feature a suspended cabin and suspended driver seat to enhance comfort during long-haul operations.

The new air suspension range is currently targeted at the domestic market, with Kumar saying the company's immediate priority is to establish the products in India before evaluating opportunities elsewhere.