Surging crude prices and geopolitical tensions weigh on commercial vehicle demand outlook, even as strong freight activity supports near-term growth in volumes
The ongoing West Asia conflict also poses near-term risks to the CV demand cycle led by potential domestic disruptions, fear analysts.
If the current geopolitical situation persists that results in supply chain disruptions and firm commodity prices, CLSA expects 30-40 per cent cuts to auto sector's FY27 earnings.
Among Nifty Auto constituents, Samvardhana Motherson International, Bharat Forge, and Ashok Leyland slipped over 4 per cent each
Rising input costs, export risks to the Middle East and fears of gas supply disruptions weigh on Indian auto stocks amid the escalating Iran conflict
Since the start of the West Asia conflict, the Nifty Midcap and Smallcap indices have moved lower, mostly in line with the frontline Nifty 50, but with less intensity
Muthuselvaraj M, Research Analyst at Mirae Asset ShareKhan highlights that TCS and HUL have broken down from a triangle pattern, while Ashok Leyland may have formed a double top on the weekly chart.
Among others, Bharat Forge, TVS Motor, and Tata Motors Passenger Vehicles slipped over 3 per cent
Ashok Leyland breaks ground for a battery pack manufacturing facility near Chennai with an investment of Rs 400-500 crore to support localisation and strengthen India's EV ecosystem
Improving macro conditions, coupled with the start of replacement demand, BNP Paribas said, should trigger the next upcycle
Hinduja Group flagship may consider exporting electric buses from India to EU and UK markets, while expanding capacity in West Asia
In the December quarter, Ashok Leyland posted a 5 per cent increase in consolidated net profit to ₹862 crore, compared to ₹820 crore during the corresponding period last year
Ashok Leyland reported a 5% rise in Q3FY26 consolidated net profit to ₹862 crore, with revenue up 22% and strong growth in MHCV and LCV volumes
Nomura said the combination of lower duties and a weaker Indian rupee increases global competitiveness for auto suppliers such as Bharat Forge, Sansera, Sonacoms, Belrise Industries, and Motherson
Commercial vehicle maker Ashok Leyland on Monday reported a 27 per cent rise in total sales at 21,920 units in January as compared to 17,213 units in the same month last year. Domestic sales were up 31 per cent at 20,079 units as against 15,327 units in January 2025, Ashok Leyland said in a statement. Sales of medium and heavy commercial vehicles in the domestic market were at 12,833 units as against 9,864 units in the year-ago month, it added. Light commercial vehicle sales in the domestic market last month were at 7,246 units as against 5,463 units in the year-ago period, the company said.
Auto stocks in focus: ICICI Securities see limited impact of likely lower EU import tariffs on Indian Auto OEM space which is steadily progressing to clock ~45 lakh units' sales volume in FY26E.
Ashok Leyland management believes MHCV industry would remain buoyant in H2, led by growth in broad-based consumption and increase in infrastructure activity.
In the past one month, Ashok Leyland has outperformed the market by surging 18 per cent, as compared to 1.3 per cent decline in the BSE Sensex.
TVS Motor, Maruti Suzuki India, Mahindra & Mahindra, and Ashok Leyland are some of the top picks of brokerages
Ashok Leyland and TVS Motor Company hit their respective all-time highs, while, M&M was close to its record high level