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CV Sales Surge: Tata Motors, Ashok Leyland Beat Headwinds
18 Aug
Summary
- Tata Motors saw 26% CV sales growth, reaching 108,700 units.
- Ashok Leyland achieved record CV sales of 48,763 units.
- Both companies' margins faced pressure from rising input costs.
Commercial vehicle manufacturers Tata Motors and Ashok Leyland have demonstrated significant resilience in Q1 FY27, reporting robust sales figures despite economic challenges. Tata Motors recorded a 26% year-on-year increase in commercial vehicle sales, totaling 108,700 units, driven by strong demand in small commercial vehicles. Ashok Leyland achieved its highest-ever quarterly commercial vehicle sales, with 48,763 units sold, buoyed by light commercial vehicle growth.
Despite these impressive volume gains, both leading players faced margin pressures. Higher input costs, particularly for steel and copper, led to a marginal decline in Tata Motors' operating profit margin to 10.2% and a 110 basis point decrease for Ashok Leyland to 10%. Nevertheless, strong vehicle sales supported profitability, with Tata Motors' net profit rising 8.3% and Ashok Leyland's by 2.7%.
Looking ahead, both companies are focused on managing costs and exploring strategic growth avenues. Tata Motors is set to integrate Iveco's commercial vehicle business pending regulatory approvals, expected by the end of August 2026. This expansion, alongside existing order backlogs and new model launches, reflects confidence in future market performance.
