Tata Motors CV, Ashok Leyland gain 2% on healthy volume growth in June

Looking ahead, while commodity pressures will persist, Tata Motors expects the momentum to continue, driven by gradual improvement in customer sentiment which had seen softening during June quarter.

Tata Motors, Ashok Leyland share price movement

 

Share price of Tata Motors and Ashok Leyland were quoting up to 2 per cent higher on the BSE in Thursday’s intra-day trade after the companies reported a healthy volume growth in the month of June 2026.

 

Tata Motors was up 2 per cent to ₹440.65 in intra-day deals. The stock price of Tata Group’s commercial vehicle (CV) company bounced back 23 per cent from its previous month low of ₹357.10, touched on June 11, 2026. It hit a 52-week high of ₹508.95 on February 27, 2026.

 

Shares price of Ashok Leyland also gained nearly 2 per cent at ₹164.90 in intra-day trade. The stock recovered 19 per cent from its June low of ₹138.05 on the BSE.

 

 

Tata Motors, Ashok Leyland June sales number

 

Tata Motors CV reported healthy sales volume of 40,805 units, up 35 per cent year-on-year (YoY) in the month of June 2026. Ashok Leyland volumes grew 25 per cent YoY at 19,194 units.

 

Tata Motors’ management said the company commenced the financial year 2026-27 (FY27) on a positive note, delivering consistent double-digit growth in each month of Q1, on a year-on-year (YoY) basis. Despite heightened geopolitical uncertainties, sales for the April to June 2026 quarter stood at 108,488 units, up 27 per cent YoY, reflecting healthy industry fundamentals and sustained demand across segments.

 

Heavy commercial vehicle (HCV) growth continues to be led by increased freight availability, infrastructure and mining activity, while Intermediate, Light, and Medium Commercial Vehicle (ILMCV) demand supported by e-commerce, fast moving consumer goods (FMCG), courier and parcel companies.  Small Commercial Vehicle and Pickup (SCVPU) is seeing improving momentum in last-mile mobility, with electric SCVs and pick-ups achieving highest ever salience of 10 per cent for the months of May and June. Demand in the commercial passenger segment remains strong, driven by school transport and government orders, the management said.

 

Looking ahead, while commodity pressures will persist, the management expects the momentum to continue, driven by gradual improvement in customer sentiment which had seen softening during the quarter. The growth is expected to be driven by auto and port logistics, e-commerce and core sectors, with the monsoon remaining a key monitorable.   

 

Brokerages view 

 

Within CV space, growth was healthy across medium and heavy commercial vehicle (M&HCV) as well as light commercial vehicle (LCV) segments with truck sub-segment within M&HCV domain driving the real growth charge. Industry outlook is cautiously optimistic in the near term amidst rising diesel prices with underlying growth levers of revival in domestic capex cycle & ageing fleet, ICICI Securities said in a note.

 

Meanwhile, analysts at Kotak Institutional Equities expect domestic M&HCV industry growth to moderate to low-single digits in FY27E after a strong FY26, largely due to a high-base effect and the normalization of GST-induced demand pull-forward. 

 

With a likely US-Iran deal, crude/diesel prices may continue its downtrend (diesel constitutes 30-50 per cent of total cost of ownership (TCO) for fleet operators), and as a result, may bring greater certainty to fleet purchase decisions and provide a floor to demand. 

 

Tailwinds such as sustained government capex on infrastructure, replacement demand from an aging fleet and healthy utilization levels should keep underlying demand supportive. However, price increases, owing to higher input costs (steel, tires and base metals), a high base and monsoon uncertainty are likely to cap the pace of growth in FY27E for the M&HCV industry, say analysts.   

The brokerage firm believes that the Iran-US deal eliminates the uncertainty associated with fuel prices and will provide the floor to the CV demand. After the recent stock price correction, the risk-reward has turned favourable. The upgrade Tata Motors CV to BUY (from ADD) with a revised FV of ₹450 (₹430 earlier) and Ashok Leyland to ADD (from REDUCE), with an unchanged FV of ₹170.  ==========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.