Ashok Leyland's Monthly Sales in M&HCV Sector is Grown by 2%

Ashok Leyland, a leading player in the commercial vehicle market, has reported a notable increase in their Medium and Heavy Commercial Vehicles (M&HCV) sales. In June 2024, the company sold 9,052 M&HCV units domestically, up by 2% compared to the same month last year.

This growth reflects a cumulative sale of 26,214 units, marking an 8% rise over the previous year. Despite a slight dip in M&HCV truck sales, a strong performance in the bus segment contributed to the overall growth. Ashok Leyland's export market performance in June 2024 presented a mixed bag of results.

The company saw a 7% decline in Medium and Heavy Commercial Vehicles (M&HCV) truck exports, selling 7,489 units compared to 8,077 units in June 2023. However, the M&HCV bus segment showed growth, with exports rising by 8%, from 1,885 units in June 2023 to 2,030 units in June 2024. This led to a 4% overall decrease in total M&HCV exports for the month, from 9,962 units last year to 9,519 units this year.

In the Light Commercial Vehicles (LCV) category, Ashok Leyland saw a modest increase of 3%, exporting 5,421 units in June 2024 compared to 5,259 units in June 2023. Combining both M&HCV and LCV segments, the total export vehicles for June 2024 slightly decreased by 2%, from 15,221 units last year to 14,940 units this year.

Despite the monthly decline, the cumulative exports for the year demonstrated a positive trend, with a 6% increase, reaching 43,893 units compared to 41,329 units in the previous year.

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M&HCV Sector in India

The Medium and Heavy Commercial Vehicles (M&HCV) goods segment in India showed a robust year-on-year growth of 15% in wholesale volumes during the second quarter of FY2024. This growth was driven by replacement demand and strong activity in mining, infrastructure, and construction sectors.

By the end of the first half of FY2024, the segment recorded a 7% year-on-year growth. Looking ahead, the M&HCV segment is projected to grow by 3-5% for the full fiscal year 2024, supported by increased freight movement during festive periods and anticipated healthy construction activities before the implementation of the Model Code of Conduct for the General Elections in 2024, which may temporarily slow down volumes.

Meanwhile, the bus segment also saw significant traction in Q2 FY2024, with volumes reaching 24,492 units, returning to pre-Covid quarterly levels. This represented a year-on-year volume growth of 33%, bolstered by a low base effect and rising demand from various sectors.

In FY2024, the mandatory scrappage policy for older government vehicles is expected to drive replacement demand from State Road Transport Undertakings (SRTUs), contributing to a projected year-on-year growth of 12-15% for the bus segment. However, post the General Elections in 2024 and the subsequent implementation of the Model Code of Conduct, the M&HCV segment could face some slowdown in volumes.

Ashok Leyland

Ashok Leyland, a prominent player in the global commercial vehicle industry, boasts a robust legacy spanning 75 years and a presence in over 50 countries. As the second largest manufacturer of commercial vehicles in India and the fourth largest globally in buses, it stands as a flagship of the Hinduja Group.

Headquartered in Chennai, Ashok Leyland operates nine manufacturing facilities including international units in the UAE and the UK, along with joint ventures focusing on high-precision automotive components. The company is renowned for pioneering innovations in commercial vehicle technology, holding certifications like ISO/TS 16949 and winning prestigious awards such as the Deming Prize.

With a strong commitment to customer service and a vast network of over 52,000 touch points globally, including dedicated service centers, Ashok Leyland continues to drive forward with innovative products and a deep understanding of market dynamics.