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Informist, Thursday, Apr. 16, 2026

 

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--Ashok Leyland official: Demand for CVs holding up well so far despite war
--Ashok Leyland official: Demand momentum created by GST cut still visible
--Ashok Leyland official: Took 1.5% price hike in April across segments
--Ashok Leyland official: Took price hike in April to offset cost pressures
--Ashok Leyland official: Mkt can absorb price hikes if demand remains firm
--Ashok Leyland official:Logistics cost risen in certain mkts like West Asia
--Ashok Leyland official: See good headroom to gain mkt share in north India
 

 

By Sagar Sen and Anand JC

 

NEW DELHI/MUMBAI – Ashok Leyland Ltd. has hiked prices of its vehicles across its portfolio by 1.5%, effective from April, to offset pressure from rising input prices, a senior company official told Informist. The company had increased the prices of its vehicles in January. "The input costs have not gone up suddenly because of the war... this is a cycle because as your economy grows, there is some pressure always on the cost side," the official said, adding that the market will be able to absorb the rising costs if the demand holds up.

 

The commercial vehicle industry has seen some moderation in demand in recent weeks, but that is normal, the official said. "... overall, so far demand has held up very well. The post-GST rate cut momentum is still there," the official said. 

 

The domestic automobile industry has remained largely unfazed by the war in West Asia, but only in terms of sales. "We are facing some stress because of logistical issues, but domestically we have not seen (any problems)," the official said. "Overseas impact is different (on operations) because that depends from country to country... in Bangladesh, Sri Lanka, there is no impact on logistics," the official said.

Ashok Leyland has seen an increase in logistics costs in West Asian markets. "... in the Middle East, the logistic cost has gone up. Therefore, the price increase there will be different. Recovery there will be different," the official said.  

 

Ashok Leyland had seen a double-digit growth in exports to countries in Africa, the Gulf Cooperation Council, and the South Asian Association for Regional Cooperation in the December quarter. In the March quarter, the company sold a total of 69,458 units, up 17% on year and 21% on quarter. 

 

Just around half of the company's product portfolio comprises trucks, 35% light commercial vehicles, and 15% buses. Ashok Leyland's market share in medium-heavy commercial vehicles, excluding defence vehicles and electric buses, was at 31% in Apr-Dec. Its market share in light commercial vehicles was at 12.7% during the same period. 

 

In recent years, the company has increasingly focused on expanding its market share outside South India. The company's market share in North India has increased to over 25%, up from about 15% four years ago. 

 

"We are increasing our presence. We have a lot of differences between our market share in the south and north," the official said. "The headroom available in the north is large. If we gain 2-3% market share in the north, then it will boost our volume growth," the official said.

 

For the December quarter, Ashok Leyland had reported a net profit of INR 7.96 billion on revenues of INR 115.34 billion. Thursday, its shares closed 0.7% higher at INR 176.73 on the National Stock Exchange.  End

 

Edited by Saji George Titus

 

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