Ashok Leyland Expects 5-7% M&HCV Growth in FY27, Launches New AVTR Air Suspension Trucks

Key Highlights

• Ashok Leyland expects 5-7% M&HCV industry growth in FY27.

• Company launched new AVTR air suspension trucks with 46-tonne GVW.

• New trucks offer 4-tonne higher payload than existing 42-tonne models.

• Air suspension system was developed over 4 years and tested for 2-3 lakh km.

• Company plans to expand air suspension technology to more truck platforms after customer feedback.

Ashok Leyland has projected 5% to 7% growth for India's medium and heavy commercial vehicle (M&HCV) industry in FY27. The company believes demand will be supported by fleet replacement, continued government spending on infrastructure, and rising private capital expenditure. Along with this positive outlook, Ashok Leyland has also launched a new range of AVTR heavy trucks with air suspension, introducing a new 46-tonne Gross Vehicle Weight (GVW) option between its existing 42-tonne and 49-tonne rigid trucks.

Also Read: Ashok Leyland Launches New Air Suspension Heavy Trucks with Higher Payload Capacity

M&HCV Industry Expected to Grow by 5-7% in FY27

Speaking at the launch event, Sanjeev Kumar, President - M&HCV, Ashok Leyland, said the company has seen an encouraging start to the financial year and remains optimistic about market demand.

According to him, the first quarter delivered strong performance. While the market benefited from some initial tailwinds, demand became more stable from June onwards and continued to improve. He also expressed confidence that the second quarter of FY27 would perform better than the same period last year.

Sharing his outlook for the industry, Kumar said the M&HCV segment is expected to record single-digit growth of around 5% to 7% during FY27.

Fleet Replacement and Infrastructure Spending to Boost Demand

Ashok Leyland expects fleet replacement to remain the biggest growth driver for the commercial vehicle industry this year. Many transport operators postponed replacing older trucks in previous years, but demand started improving after GST rationalisation.

Kumar said the average age of commercial vehicle fleets across the industry remains high, creating a strong need for operators to replace ageing trucks with newer and more efficient models.

He added that continuous government investment in infrastructure projects, strong construction activity, and increasing private capital expenditure are also supporting demand for heavy commercial vehicles.

The company also noted that exports, which had slowed due to the conflict in West Asia, largely returned to normal in June, providing additional support to business.

Ashok Leyland Launches New AVTR Air Suspension Heavy Trucks

Ashok Leyland has expanded its AVTR truck portfolio by launching a new range of air suspension-equipped heavy trucks. The new models introduce a 46-tonne GVW option, filling the gap between the company's existing 42-tonne and 49-tonne rigid trucks.

Earlier, customers had limited choices between these two weight categories despite regulations allowing multi-axle rigid trucks to carry up to 49 tonnes GVW.

The company said the new trucks use the same tyre configuration as the existing 42-tonne models while offering an additional 4-tonne payload capacity, allowing transport operators to carry more cargo without major vehicle changes.

Higher Payload Can Increase Fleet Earnings

According to Ashok Leyland, the additional payload can significantly improve fleet profitability. Sanjeev Kumar said a 4-tonne increase in carrying capacity can translate into nearly ₹5 lakh of additional business value for operators.

Although the new air suspension trucks are expected to cost around 3% to 4% more than comparable conventional models, the company estimates they can generate nearly ₹30 lakh in additional earnings over a six-year financing period through improved productivity and higher revenue.

Ashok Leyland believes customers should focus on the overall business returns rather than only the initial purchase price, as the higher payload helps improve long-term profitability.

Air Suspension System Developed and Tested in India

Ashok Leyland said the new trucks comply with Automotive Research Association of India (ARAI) regulations, which allow higher payload limits for vehicles equipped with air suspension.

The company revealed that its engineering team spent four years developing and validating the new platform. During the development process, the trucks completed more than 2-3 lakh kilometres of testing, while the complete air suspension system was designed and localised in-house.

According to the company, the extensive testing ensures that the new trucks are reliable and ready for commercial operations.

Company Plans Wider Rollout of Air Suspension Technology

Ashok Leyland is now evaluating the possibility of introducing air suspension technology across more truck platforms. However, the company will first study customer feedback and examine whether similar payload advantages can be achieved in other vehicle configurations under existing regulations.

Commenting on the company's product strategy, Shenu Agarwal, Managing Director and CEO, Ashok Leyland, said innovation should always combine advanced technology with customer-focused solutions that create real business value.

Also Read: Montra Electric Opens First e-SCV Dealership in West Bengal, Eviator Fleet Crosses 1,000 Units

CMV360 Says

With expectations of 5% to 7% growth in the M&HCV industry during FY27, Ashok Leyland remains optimistic about market demand driven by fleet replacement, infrastructure development, and higher private investment. The launch of the new AVTR air suspension truck range strengthens its product portfolio by offering a 46-tonne GVW option that delivers higher payload capacity, improved productivity, and better long-term returns for fleet operators while reinforcing the company's focus on innovation and customer value.