Ashok Leyland's Domestic Sales Decline by 12% in September 2024

Key Highlights

• Ashok Leyland's domestic sales fell 12% in September 2024.
• M&HCV sales dropped by 15%, with trucks down 17%.
• Bus sales increased slightly by 3%.
• LCV segment saw a 6% decline.
• Recovery is expected in the second half of FY25.

Ashok Leyland, one of India's leading commercial vehicle manufacturers, reported a 12% drop in its domestic wholesale sales for September 2024. The company sold 16,041 units, compared to 18,193 units during the same period last year.

Sales Breakdown

The Medium and Heavy Commercial Vehicle (M&HCV) segment saw a more significant drop, with sales declining by 15%. In September 2024, the M&HCV segment sold 10,210 units, down from 11,960 units in September 2023. The truck sub-segment, in particular, recorded a 17% decline, with 8,414 units sold compared to 10,109 units last year. On the brighter side, the bus segment experienced a slight 3% increase, selling 1,796 units, up from 1,851 units in September 2023.

Meanwhile, the Light Commercial Vehicle (LCV) category saw a 6% decline in sales. Ashok Leyland sold 5,831 LCVs in September 2024, down from 6,233 units during the same period last year.

Market Outlook

Although the replacement demand for trucks has been delayed, leading to an ageing fleet, the report suggests that advancements in logistics systems and new, more efficient trucks will eventually drive replacement demand. The bus segment, which has shown steady sales, is also expected to grow further, thanks to continuous orders and Ashok Leyland's strong position in the market.

Also Read: Tata Motors Reports 23% Drop in Wholesale Sales in September 2024

CMV360 Says

Ashok Leyland's 12% sales decline in September 2024 is seen as a temporary dip. With expected improvements in government infrastructure spending and growing demand for new vehicles, the company is assured of recovery and future growth in the coming months.