Latest news with #M&HCV
Time of India
07-07-2025
- Automotive
- Time of India
Commercial Vehicle sales expected to rebound by up to 5% in FY26: CareEdge Ratings
After two years of subdued performance, India's commercial vehicle (CV) industry is poised for a modest recovery in FY26, with overall wholesale volumes expected to grow by 2–5 per cent, according to CareEdge Ratings . The turnaround is likely to be supported by increased infrastructure activity, favourable monsoon forecasts, improved financing conditions, and fleet replacement demand. The Light Commercial Vehicle (LCV) segment is projected to grow by 2–4 per cent, while Medium and Heavy Commercial Vehicles (M&HCV s) are expected to see a stronger rebound of 4–6 per cent. 'The commercial vehicle industry is set for moderate growth, led by rising infrastructure spends, improved rural sentiment, and the easing of interest rates,' said Arti Roy, Associate Director, CareEdge Ratings. She added that factors such as road tax concessions under the scrappage policy and transition to electric buses will further boost demand, especially in the bus segment. The Reserve Bank of India's 100 basis point cumulative repo rate cut between February and June 2025 is expected to ease financing costs in FY26, boosting affordability for buyers and encouraging demand. (One hundred basis points are equivalent to 1 per cent). States offering road tax concessions of 15–25 per cent under the Vehicle Scrappage Policy are also likely to support new vehicle sales. M&HCV and LCV performance In FY25, M&HCV truck volumes declined by 2.7 per cent, weighed down by election-related disruptions, delayed infrastructure projects, and high interest rates. In contrast, M&HCV bus volumes rose 21.6 per cent, driven by increased demand for public transport and government fleet renewals. Overall M&HCV volumes grew by a muted 1.2 per cent. The LCV segment also faced headwinds, including weak rural demand, competition from electric cargo three-wheelers, and cautious financing for small fleet operators. While LCV passenger carriers grew 8 per cent, goods carriers declined by 1 per cent. The sector will also navigate key regulatory changes in FY26–FY27, including the mandatory introduction of air-conditioned truck cabins from October 2025 and the rollout of TREM-V emission norms for non-road vehicles from April 2026. These changes may increase vehicle costs, potentially triggering a pre-buying rush in FY26. Overall, CareEdge Ratings expects these combined factors to drive a gradual but sustained recovery in India's commercial vehicle industry in the year ahead.
Time of India
25-06-2025
- Automotive
- Time of India
Ashok Leyland eyes northern push, projects single-digit M&HCV industry growth
New Delhi: Commercial vehicle manufacturer Ashok Leyland aims to deepen its market penetration in North India, followed by the East over the next 2–3 years, while continuing to defend its hold in the South and West. Currently, about 30–32 per cent of total industry volumes (TIV) comes from the North, where Ashok Leyland holds a 25 per cent market share. 'We are aiming to raise the North's contribution to 30 per cent by improving expansion in the region. When I talk about the North, I am referring to all the states up to Uttar Pradesh and Rajasthan,' Sanjeev Kumar, President of M&HCV, Ashok Leyland, said. The Chennai-based company's plan is to add over 50 touchpoints in the North this year, expanding beyond its current 291 channel outlets across the region. While South and West India contribute around 21–22 per cent each to the overall CV industry, the East stands at about 15 per cent and central India at 8–9 per cent. The automaker has ramped up capacity with a newly inaugurated bus body plant in Vijayawada and a chassis and bus facility in Lucknow, which is set to become operational by October. The company also operates two existing northern plants-- one in Alwar for buses and trucks, and an integrated facility in Pantnagar. In the south, it runs a foundry and two plants in Ennore for buses, trucks, and exports; a gear train facility in Bhandara; a bus body unit at GTVS-Trichy; and three Hosur plants (I, II, III) catering to a wide product range. Industry growth in FY26 Kumar noted that the CV industry typically follows a three-year growth cycle before entering a slowdown. This being the fourth consecutive year of growth, it should expand, albeit at a single-digit rate. According to him, core sectors such as e-commerce, government capex, and agriculture are performing well, giving confidence in sustaining "at least a single-digit" growth. Last year, the industry recorded a decline of 3 per cent. On the bus front, demand remains strong, led by robust order inflows from State Transport Undertakings (STUs) across India. Additionally, the school and staff transportation segments continue to show steady demand. However, he pointed out that while the sector is navigating several structural challenges. The government's efforts to enhance logistics efficiency such as dedicated freight corridors between key regions, are boosting rail transport, leading to a short-term shift from road to rail cargo. Plans to expand inland waterway usage are also underway to cut costs and transit times. Simultaneously, demand is shifting toward higher-tonnage trucks, as fleet operators aim to move more goods with fewer vehicles which is also impacting overall sales volume. According to him, a key positive for the CV sector is the stability in diesel prices over the past 2–3 years. This consistency has enabled fleet operators to plan finances more effectively, providing cost predictability amid shifting industry dynamics and ongoing logistical reforms. Ashok Leyland currently has an order book of nearly 4,000 buses from STUs awaiting execution.
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Business Standard
24-06-2025
- Automotive
- Business Standard
Ashok Leyland sees single-digit growth in medium, heavy vehicle segment
Industry growth is expected to be driven by the government investment in infrastructure and tailwinds such as the good performance of core industries, Sanjeev Kumar, President - M&HCV said Press Trust of India New Delhi The medium and heavy commercial vehicles segment in India is expected to grow in the single digit this fiscal, recovering from a decline of 3 per cent in FY25, a top official of Ashok Leyland said on Tuesday. The Chennai-based firm is planning to grow ahead of the industry this year and is focusing on expanding its presence in North India, the largest market for commercial vehicles (CVs), Sanjeev Kumar, President - M&HCV at Ashok Leyland Ltd, told reporters here. "When you look at last year, the industry volume came down by 3 per cent. Our understanding is that this is the fourth year running. "If you look at the CV industry, generally it stays good for three years, and then itgoes through a downtrend. So we expect the industry to grow, at least in single digit," he said when asked about the industry outlook. The industry growth is expected to be driven by the government investment in infrastructure and tailwinds such as the good performance of core industries, Kumar said. On the company's growth prospects, he said every original equipment manufacturer (OEM) tries to outpace the total industry growth, and "same is the case for Ashok Leyland and we want to increase our market share". Commenting on the significance of the North Indian market, he said, it is the largest market for the CV sector and contributes to more than a third of the total industry volume. "We want the North (market) contribution to go at least 30 per cent. Right now, its contribution is a bit low...," Kumar added. Further, he said, "We have gained nearly 6.5 per cent market share in the last three remain dedicated to strengthening our presence in Northern India." As part of its expansion in the said market, Ashok Leyland plans to add more than 50 touchpoints this year. The company operates almost 300 channel outlets across the region. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
06-05-2025
- Automotive
- Time of India
Mahindra open to strategic alliances to drive M&HCV growth
Even as Mahindra & Mahindra ( M&M ) advances its acquisition of SML Isuzu to strengthen its presence in the intermediate and light commercial vehicle (I&LCV) space, the company is also actively exploring opportunities to scale up in the medium and heavy commercial vehicle (M&HCV) segment. This strategic push comes as global players increasingly view India as a key hub of opportunities, driven by shifting geopolitical dynamics. Responding to an ETAuto question about a possible strategic tie-up to boost its M&HCV business, Rajesh Jejurikar, Executive Director and CEO (Auto & Farm Sector), said the segment is now considered a "scalable growth gem" for the company. 'We will look at every opportunity to grow. If there is a possibility to collaborate and build momentum in this segment, we are completely open to it,' Jejurikar said, during a media conference call. 'It is now firmly in the category of a growth gem, and we intend to invest in scaling the business.' However, he acknowledged that gaining market share in the M&HCV space remains a challenge. 'We are very mindful that market share gains in this segment don't come easy.' Currently, the auto major holds a 3 per cent share in the M&HCV segment, a market dominated by players like Tata Motors and Ashok Leyland. The company aims to grow its share to 5 per cent by 2030. For Mahindra, a collaboration would offer access to critical technological capabilities from a global partner, creating a mutually beneficial, win-win scenario. Betting big on LMM business The Mumbai-headquartered automaker is also betting big on another of its 'growth gems'-- its Last Mile Mobility (LMM) business– where it is targeting a 2X to 3X growth trajectory. Jejuriker said the growth strategy includes a strong push for electric vehicles (EVs), expanding beyond three-wheelers to potentially include four-wheelers within the last mile mobility category. 'We believe exports will present a significant growth opportunity, and it will be a key area of focus going forward,' he added.
NDTV
03-05-2025
- Automotive
- NDTV
Ashok Leyland Sales Decline In April 2025; Check Details
Ashok Leyland, one of the major commercial vehicle manufacturers in the Indian market, has reported a decline of 33 per cent in total sales volume in April 2025 compared to the previous month. Specifically, the manufacturer sold 13,421 units in April while the numbers stood at 20,041 in March 2025. The Medium and Heavy Commercial Vehicle (M&HCV) segment saw a drop in sales, plummeting 38 percent month-on-month to 7,960 units, a decrease from 12,882 units in March. Sales of M&HCV trucks fell by 35 percent, while bus sales experienced a significant decline of 47 percent. Also Read: Hyundai Creta Tops Chart For April'25 Sales With 17,016 SUVs Sold This is in stark contrast to March 2025, when Ashok Leyland marked a 25 percent year-on-year increase in M&HCV bus sales, driven by a rise in institutional purchases and growing demand for public transport. In comparison to the heavy vehicle sector, the Light Commercial Vehicle (LCV) segment remained fairly steady, with sales reducing by 21 percent to 5,103 units in April, down from 6,428 units in March. Overall domestic sales decreased by 35 percent month-on-month to 12,509 units, with M&HCV sales falling by 42 percent, truck sales reduced by 37 percent, and bus sales declined by 53 percent. The export market also saw changes, with total shipments dropping by 23 percent month-on-month to 731 units. This decline was primarily driven by a 69% decrease in M&HCV exports, although LCV exports increased by 18 percent.
