AC Cabin Mandate Will Raise Truck Prices by 1.5%, Says Ashok Leyland

New Rule Aims to Improve Driver Comfort and Long-Haul Efficiency

The Government of India has made it mandatory for all medium and heavy commercial vehicles (M&HCVs) to have air-conditioned (AC) cabins starting June 8, 2025. This rule applies to trucks with a capacity between 7.5 tonnes and 55 tonnes.

According to Ashok Leyland, one of the top truck manufacturers in India, this new rule will slightly increase the prices of trucks. The company said that truck prices will go up by about 1.5% depending on the type and use of the vehicle.

Ashok Leyland Confirms Industry is Ready for the Change

Sanjeev Kumar, President and Head of M&HCV at Ashok Leyland, stated that this price hike is not expected to impact customer demand. He explained that the industry has been preparing for this rule ever since it was announced in December 2023. Unlike earlier changes, such as new emission norms, there has been no rush to buy trucks before the rule takes effect.

Kumar also said that many companies have already started using AC cabins. Around 15–20% of the commercial vehicle market has adopted them. This has led to better performance on long routes. Earlier, trucks were running 7,000 to 8,000 km a month, but with AC cabins, they are now running 15,000 to 20,000 km monthly.

Truck Makers Begin Factory Production with AC Cabins

Ashok Leyland has already started producing trucks with AC cabins at all its plants. The company is ready with the updated models across its M&HCV product line.

In addition, Tata Motors, another major player in the commercial vehicle segment, has also introduced factory-fitted AC systems across its truck range. These include SFC, LPT, Ultra, Signa, Prima, and even the cowl models.

Sales Show a Slight Decline, But Outlook Remains Positive

Even though Ashok Leyland’s truck sales dropped by 5% in FY25 and 10% in April 2025, the company remains confident. The new rule is expected to benefit the transport sector by improving driver comfort and productivity without slowing down demand.

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