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Ashok Leyland expects the medium and heavy commercial vehicle (M&HCV) industry to grow by 5% to 7% in FY27, driven by fleet replacement demand, government spending on infrastructure, and rising private capital expenditure. On Monday, the company also launched a new range of AVTR heavy trucks with air suspension, offering customers a new 46-tonne GVW option between the existing 42-tonne and 49-tonne rigid trucks. The new range aims to help fleet operators carry more payload and improve earnings.
Speaking at the launch, Sanjeev Kumar, President of M&HCV, Ashok Leyland, said the company is confident about market demand after a strong start to the financial year.
"Quarter 1 was very encouraging. We had some tailwinds in the beginning, but June onwards things settled and the market has really picked up. We are quite hopeful that even the second quarter should be better than last year's second quarter."
Sharing the industry's outlook, he added, "Overall, I feel that we are looking at single-digit growth. Very difficult to give you a number, but yes, around 5 to 7 per cent."
According to Kumar, fleet replacement will remain the biggest growth driver for the M&HCV industry this year. Many transport operators delayed replacing their old vehicles in previous years. However, after the GST rationalisation, demand for new commercial vehicles started improving.
He also said that the average fleet age across the industry remains high. Therefore, many fleet owners now need to replace older trucks with new models. In addition, ongoing government investment in infrastructure and growing private capital expenditure continue to support demand for commercial vehicles.
"A major growth driver last year was the market change after GST got rationalised. A lot of customers who were waiting to replace their existing fleet came forward. Overall fleet age is very high right now in the CV industry and it calls for replacing that old fleet. Construction is doing very well, the government is spending money on infrastructure and private capex is also growing."
Meanwhile, Kumar said exports, which had slowed because of the West Asia conflict, largely returned to normal in June.
Ashok Leyland's newly launched AVTR range fills the gap between 42-tonne and 49-tonne GVW rigid trucks. Under the current regulations, multi-axle rigid trucks can carry a maximum GVW of 49 tonnes. However, customers earlier had limited options between the two weight categories.
Explaining the new range, Kumar said, "There was a huge gap. Traditionally you would find our multi-axle trucks offering 42-tonne or 49-tonne GVW. We worked on those gaps with this air suspension range."
The new trucks allow operators to choose a 46-tonne GVW model while using the same tyre configuration as the existing 42-tonne trucks. As a result, customers get an additional 4-tonne payload advantage without major changes to the vehicle.
According to Kumar, the higher payload can significantly improve business earnings.
"That is where a 4-tonne advantage is available to us now. Four tonnes is a huge advantage for any customer, any business. If you convert that into money, it is almost ₹5 lakh."
He added that although the new trucks may cost around 3% to 4% more than comparable conventional models, they can generate nearly ₹30 lakh in additional earnings over a six-year financing period.
"Ultimately it is not the cost of the truck. Ultimately it is whether it makes economic sense for you to buy a truck which will increase your revenue, and in the end your profit should grow."
Ashok Leyland said the additional payload comes under the existing Automotive Research Association of India (ARAI) regulations, which allow higher payload limits for trucks equipped with air suspension.
Kumar also said the company spent four years developing and validating the new platform before launching it. The trucks completed more than 2–3 lakh kilometres of testing, while the complete air suspension system has been designed and localised by Ashok Leyland's engineering team.
"Our product development team has worked for the last four years in creating this. These vehicles have gone through more than 2–3 lakh kilometres of trials. It is a tried and tested vehicle."
Ashok Leyland Trucks is now evaluating the possibility of introducing the air suspension technology in more truck platforms. However, Kumar said the company will first study customer feedback and assess whether other truck configurations can offer similar payload benefits under the current regulations.
Meanwhile, Shenu Agarwal, Managing Director and Chief Executive Officer, Ashok Leyland, said the company's product strategy will continue to focus on innovation that delivers value to customers.
"True innovation happens when technology is at the forefront and the customer is at the centre."
With the launch of the new AVTR range and a positive outlook for FY27, Ashok Leyland aims to strengthen its position in the M&HCV segment while offering transport operators higher productivity and better returns.
