Ashok Leyland expects domestic medium and heavy commercial vehicle (MHCV) industry growth to be significantly stronger in the second quarter of FY27, following a sharp recovery in June and July.
The company said MHCV industry growth crossed 14 per cent in both June and July after a weak May, while customer sentiment has remained positive in August. Against 13 per cent growth in Q1, the company expects a much better performance in Q2, said Shenu Agarwal, Managing Director and CEO, Ashok Leyland Limited.
Ashok Leyland’s domestic MHCV truck volumes grew 15 per cent year-on-year to 22,998 units in Q1, taking its market share to 29 per cent. LCV volumes rose 21 per cent to a record 18,874 units.
The company, however, expects commodity costs to remain a challenge in Q2, with the impact likely to be higher than in Q1. It is relying on price increases, cost savings and a better product mix to offset the pressure.
Ashok Leyland has already taken a price increase from July 1 and is considering another increase during the quarter.
It expects the commodity cost situation to begin improving from Q3 and more significantly in Q4, he told analysts while discussing the company’s Q1’27 results.
Published on August 18, 2026
