Volume uptick in FY22 to drive revenue, margin gains for Ashok Leyland

The company is expected to gain market share led by higher tonnage trucks

Ashok Leyland is expected to be one of the key gainers of a recovery in medium and heavy commercial vehicle (M&HCV) volumes. After two consecutive years of decline, the worst-performing segment in the auto sector is expected to see the fastest rebound. Some of the improvement is reflected in the recent sales numbers of the only pure-play commercial vehicle maker in the listed space. 

Even as its FY21 year-to-date volumes for domestic M&HCVs are down 60 per cent, the company posted a 23 per cent rise in November. After the sector’s single-digit fall in volumes, analysts at Emkay Research expect, 24