Ashok Leyland Share Price: Commercial Vehicle Outlook Tied to GST and Credit Policy Boost

Market Performance

Ashok Leyland share price opened lower on Tuesday, slipping around 3% to ₹128 at 9:25 am as investors booked profits after a sharp 7% rally in the previous session. Despite the dip, the stock has delivered nearly 16% gains since the start of 2025, highlighting strong investor confidence in the commercial vehicle (CV) manufacturer.

Key News Driving Sentiment

India’s commercial vehicle sector is awaiting crucial policy measures that could reshape demand dynamics. According to company management, two factors hold the key to unlocking growth momentum:

• GST Rate Cut: At present, CVs attract a 28% GST. A reduction to 18% would immediately lower acquisition costs, encourage purchases, and generate more freight movement.
• Credit Availability: With more than 90% of CV sales financed through loans, easier access to credit would provide significant relief to buyers and help lift demand.

If these measures come into effect, the sector could witness a sharp revival in FY26 and FY27.

Company Details

Ashok Leyland showcased resilience in the June quarter despite a challenging environment. The company expanded its footprint across multiple segments:

• Medium & Heavy Commercial Vehicles (MHCVs): Market share rose by 1.3%, led by a 1.8% gain in the truck category.
• Light Commercial Vehicles (LCVs): Added 1.2% market share in this space.
• Exports: Registered a 29% year-on-year jump, highlighting robust overseas demand.
• Bus Segment: Saw a decline as demand shifted toward fully built vehicles.

Other Business Segments

• Electric Mobility: Switch India operations have stabilized, with the unit on track to turn PAT positive by FY26-end.
• Defence Business: Reported a year-on-year dip in Q1 due to the execution of a large order last year. However, the order book remains strong at around ₹1,000 crore, with expectations of 25–30% topline growth this fiscal.

Ashok Leyland Share Price Summary

• Current Price: ₹128 (down 3% intraday)
• Year-to-Date Performance: +16%
• Key Drivers Ahead: GST reforms, credit policy changes, and steady performance in MHCV, LCV, exports, EVs, and defence verticals.