CV Market Recovery? Ashok Leyland and VECV Post Strong March Auto Sales

Two of India's leading commercial vehicle manufacturers, Ashok Leyland and VE Commercial Vehicles (VECV), have reported significant sales growth for March 2025, signaling a robust recovery in the commercial vehicle market as the fiscal year draws to a close.

Strong Year-End Performance

Ashok Leyland, the Hinduja Group flagship company, recorded a 6% year-on-year increase in total vehicle sales for March 2025, reaching 24,060 units compared to 22,736 units in March 2024. Similarly, VECV, an unlisted subsidiary of Eicher Motors, reported a 7.6% growth with total sales of 12,094 units in March 2025, up from 11,242 units in the same month last year.

Bus Segment Leads Growth

Both manufacturers witnessed exceptional performance in their bus segments. Ashok Leyland's M&HCV bus segment saw a remarkable 25% growth with sales of 4,019 units in March 2025, compared to 3,218 units in the same month last year. VECV reported even stronger numbers in its bus category, with LMD Bus sales increasing by 23.2% to 2,831 units and HD Bus sales surging by 33% to 310 units. VECV's export of buses nearly doubled with a 94.1% increase.

"The significant growth in the bus segment across manufacturers indicates a strong revival in public transportation demand and institutional purchases by state transport undertakings," noted an industry analyst.

Mixed Performance in Truck Segment

Ashok Leyland's domestic M&HCV truck sales grew by 9% to 12,882 units in March 2025 from 11,773 units in the previous year. VECV showed varied performance across its truck portfolio, with domestic HD (≥18.5T) trucks growing by 3.9% to 3,079 units, while its SCV/LMD trucks (<18.5T) witnessed a slight decline of 1.3%, selling 4,967 units compared to 5,032 units in March 2024.

Export Performance

VECV demonstrated remarkable export growth of 44.3%, reaching 665 units in March 2025 compared to 461 units in March 2024. Ashok Leyland's export figures, while not specifically highlighted in their March report, contributed to their overall positive performance.

Year-to-Date Performance

For the fiscal year 2024-25, Ashok Leyland's total sales remained nearly flat at 195,097 units compared to 194,553 units in the previous year, showing just a 0.3% increase. VECV, however, posted a more robust full-year growth of 5.4%, with total sales reaching 90,161 units compared to 85,560 units in FY 2023-24.

Market Recovery

The March 2025 results from both manufacturers indicate a strong recovery in the commercial vehicle market after mixed performance in the earlier months of 2025. Both companies had shown positive momentum in February 2025, with Ashok Leyland reporting a 2% year-on-year growth and VECV posting a stronger 9% increase.

"The commercial vehicle market in India is showing clear signs of recovery after facing challenges in 2024," said a market expert. "The strong March numbers suggest improved demand conditions driven by infrastructure development, fleet replacement cycles, and pre-buying ahead of potential regulatory changes."

Outlook

Industry observers expect the positive momentum to continue into the new fiscal year, supported by government infrastructure projects, improved economic activity, and technological advancements in commercial vehicles, including a growing shift toward cleaner technologies such as CNG and electric variants.