Recording a 353 percent increase in the revenue for the first quarter of FY2021-22 at INR 29,510 million in comparison to the revenue generation of INR 6,510 million in the corresponding quarter of FY2020-21, Ashok Leyland is confident of a strong demand emerging post the second Covid-19 wave. Clocking export volumes of 1,437 units in the first quarter of FY2021-22, up 254 percent when compared to the export of 405 units in the first quarter of FY2020-21, the commercial vehicle manufacturer is concentrating on vaccination and the adherence of safety protocols to try and ensure that all its stakeholders stay protected from a potential third wave. Experiencing a 1,041 percent growth in domestic M&HCV volume in the first quarter of FY2021-22, which is almost twice than that of the industry growth volume at 562 percent during the same period, the company has reported a net loss of INR 28,20 million in the first quarter of FY2021-22 as against a net loss of INR 38.90 million in the corresponding quarter of FY2020-21. Selling 8,690 LCVs in the domestic market in the first quarter of FY2021-22, up 224 percent as compared to the sale of 2,686 LCVs in the corresponding quarter last fiscal, Ashok Leyland is closely observing the way the freight rates are shaping up. It is confident that freight rates will improve with higher availability of commercial vehicles once the Covid-19 subsidies and uncertainty fades. “We are hoping for the volumes to grow higher as the market gets better,” mentioned Mahadevan. “July (2021) has been a growth month,” he added. Stressing that they have had eight months of degrowth, Mahadevan said, “Economic growth will induce growth in CVs.”

CV trends
Working on a strategy for a robust domestic and exports growth, the commercial vehicle major is appointing dealers in Africa. Looking at gaining good traction in South East Asia, Ashok Leyland will launch new products in the LCV segment even though not in the immediate quarter. Buoyed by the international markets opening up and experiencing export thrust, the company is said to be testing an electric version of its LCV platform on which the Bada Dost is based in the UK. This vehicle is expected to be launched at the end of this fiscal or in the first half of the next fiscal. Of the opinion that electric vehicles are catching up, especially at the local point of use, on the encouragement of the governments, Mahadevan averred, “It is more to do with buses, but trucks will catch up.” Seeing a trend of petrol commercial vehicles in the low-tonnage segment of sub-1 tonne to 1.5 tonne, Mahadevan drew attention to the push on CNG. “We are ready in the LCV and ICV (segment),” he added. Of the firm belief that diesel vehicles will continue and the IC engine will coexist and not die overnight, Mahadevan said, “We are ready to cater to higher demand.” 
 

Watching closely how freight operators are able to pass on the fuel price hike to their end customers, Ashok Leyland is hoping that bus commute will pick up. A 40,000 units per annum market, according to Mahadevan, buses have been severely affected due to the Covid-19-led disruption. Delivering 40 electric buses to the city of Chandigarh recently (from where it has bagged an order to build and maintain e-buses with quick charging technology), Ashok Leyland is expecting pent-up demand to show up once normalcy returns. Also expecting demand to show up because of the need to ferry people without sacrificing social distancing norms, Mahadevan drew attention to their work towards further strengthening their position in the bus and LCV market segments. With the talk of schools reopening in regions where the Covid-19 infections are down, and the relaxation in Covid-19 norms in some region allowing more employees to return to their offices, bus demand is expected to improve post witnessing a sudden downfall mid-last year. Through the establishment of Switch Mobility, Ashok Leyland is keen to experience a speedier ride in the ‘cleaner and greener’ bus space. 
 

Managing costs and productivity 
Eyeing international markets like the US, Europe and Japan, the company, through the Switch Mobility subsidiary, has worked with a few consultants to make sure that its data points and numbers are on par with the current situation. Under Switch Mobility, it is developing new products to present an advantage of unique position in terms of value and premium positioning. For its Switch Mobility subsidiary that includes the erstwhile Optare of UK, Ashok Leyland has managed to get USD 18 million worth of investment from Dana Incorporated (Dana), a US-based manufacturer of drivetrain and e-propulsion systems. To do de-bottlenecking once enough demand is evident, Ashok Leyland, investing sufficiently in terms of capex, is confident of seeing early growth sprouts in LCVs. Therefore, if it were to do immediate capex investment, it would be in LCVs. Discussing with scrappage centres post the announcement of the scrappage policy, Ashok Leyland, the second-largest CV maker in the country, is witnessing good traction from its other business verticals like defence, power solutions and aftermarket. They are contributing to its top line. 
 

With the pace of vaccination picking up and positively setting in, Ashok Leyland is expecting a demand spike in commercial vehicles after the fear of a third Covid-19 wave is over. This, according to Mahadevan, could happen in the second half of this fiscal. Focusing on costs, productivity and middle level management, the commercial vehicle major is also concentrating on reducing its carbon footprint. Apart from announcing strategic steps to move towards net zero carbon mobility through Switch Mobility, Ashok Leyland, said Mahadevan, has formed an ESG committee of the Board. The committee will guide and propel the commercial vehicle manufacturer to achieve its sustainability agenda.
 

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Tier 1 supplier Uno Minda has announced an expansion into the passenger vehicle seating systems segment with a new greenfield facility in Maharashtra.

The company’s board has approved the construction of a manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra, with an investment of INR 3.2 billion with operations scheduled to begin by Q4 FY2028.

The project will be managed by Uno Minda Tachi-S Seating, a joint venture between Uno Minda and TACHI-S Company of Japan. The joint venture, which began in September 2022 with the production of seat recliners, has now secured an order from an original equipment manufacturer (OEM) for seating systems.

Ravi Mehra, Managing Director, Uno Minda, said, "This is one of the most exciting chapters in Uno Minda's growth story. Entering the complete 4W Passenger Vehicle Seating Systems segment isn't just a product expansion — it's a strategic leap that substantially increases our per-vehicle value potential and deepens our footprint in a segment that is central to the premium vehicle experience. This greenfield facility reflects our unwavering commitment to advanced domestic manufacturing and delivering the kind of high-performance seating comfort that India's rapidly evolving automotive market demands.”

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Autoliv and Great Wall Motor (GWM) have signed a Global Strategic Cooperation Framework Agreement to expand their long-term partnership. The agreement follows a collaboration established in 2023 and aims to support GWM’s international expansion.

Under the framework, the companies will cooperate in areas including global business growth, supply chain management, localised operations and the development of safety systems. The partnership is intended to align innovation and product strategies.

Mikael Bratt, CEO, Autoliv, said, "Today's agreement marks an important step in our continued collaboration with Great Wall Motor. By combining GWM's international growth ambitions with Autoliv's global capabilities in automotive safety, we are strengthening the foundation for an even more integrated and resilient partnership."

Jack Wei, Chairman, Great Wall Motors, said, "Safety is the bottom line of the automotive industry. The partnership between Great Wall Motors and Autoliv began with a shared vision and a steadfast commitment to the mission of safety. Now we are strengthening our collaboration and will jointly build the industrial cornerstone of automotive safety and deliver safer Great Wall vehicles to users around the world."

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The Automotive Component Manufacturers Association of India (ACMA) has released its performance review for FY2025–26, which saw the industry record a turnover of USD 85.9 billion (INR 7,600 billion), representing a growth of 12.7% compared to the previous year. Over the past five years, the sector has grown at a CAGR of 17 percent.

The industry body stated that supplies to OEMs rose by 16.3 percent to INR 6,628 billion, while the aftermarket segment grew by 9 percent to INR 1,084 billion. Exports increased by 5 percent to USD 24 billion, with Europe remaining the primary market. Imports grew by 13 percent to USD 25.4 billion, largely due to demand for technology products and components from China, Japan and Germany. Supplies for electric vehicles accounted for 4.6 percent of domestic OEM supplies, excluding lithium-ion batteries.

Vinnie Mehta, Director General, ACMA, said, “FY26 reaffirmed the strength and resilience of India’s auto component industry. Robust domestic demand, continued investments in capacity and technology, and the confidence of global customers enabled the industry to deliver another year of healthy growth despite a challenging international environment. As global supply chains continue to diversify, India is steadily strengthening its position as a trusted manufacturing and sourcing partner for the global automotive industry. While imports of advanced technology products and specialised components increased during the year, they also underline the next opportunity before us - to deepen localisation, accelerate technology development and move further up the value chain. The industry’s long-term competitiveness will increasingly be defined by innovation, quality, sustainability and supply-chain resilience.”

Vikrampati Singhania, President, ACMA, added: “The medium- to long-term outlook for the Indian auto component industry remains positive. Growing domestic demand, infrastructure-led economic growth, expanding manufacturing investments, deeper global integration through Free Trade Agreements and increasing global sourcing from India are creating significant opportunities for the sector. At the same time, geopolitical developments, supply-chain disruptions, the availability of critical minerals such as rare earth magnets, logistics costs and raw material volatility will require continued strategic focus. The industry remains committed to investing in advanced manufacturing, localisation, digitalisation and sustainable mobility solutions to enhance India’s global competitiveness.”

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Automotive retail sales in India touched a new record for the month of June with a total of 2,557,234 units sold, up 21.83 percent YoY, as against 2,098,996 units sold for the same period last year.

As per the latest data shared by the Federation of Automobile Dealers Associations (FADA), the apex body representing automotive dealers in India, the record performance was witnessed across vehicle categories – two-wheelers, three-wheelers, passenger vehicles and commercial vehicles.

For June 2026, two-wheeler sales came at 1.82 million units, up 21.22 percent YoY, three-wheelers at 120,889 units, up 16.2 percent YoY, passenger vehicle at 410,853 units, up 26.6 percent YoY, tractors at 100,818 units, up 25.31 percent YoY and commercial vehicle at 90,972 units, up 16.8 percent YoY.

On the other hand, the construction equipment segment saw a decline of 40.94 percent YoY to 5,244 units, albeit a high base.

C S Vigneshwar, President, FADA, said, “Tractors recorded their second-best June ever. That such records have come in a seasonally transitional month underscores the structural depth of the India Growth Story and the widening aspirations of Bharat.”

He further stated that when it came to two-wheeler sales, saw a marginal MoM sequential decline due to rural demand dip on the back of late onset and uneven progress of south-west monsoon. This led to many customers opting for a ‘wait-and-watch mode’ for their purchase decisions. But on the flip side, dealers witnessed a strong demand for entry-level two-wheelers, improved supply from automakers and a decisive shift in demand for electric vehicle offerings.

“Two-wheeler electric vehicle share crossed double digits for the first time at 10.60 percent against 7.34 percent a year ago,” stated Vigneshwar.

Similarly, passenger vehicle retail sales also clocked their best performance for June, with both rural (+35.09 percent YoY) and urban markets (+24.67 percent YoY) witnessing strong demand. Share of alternative energy vehicles (CNG, hybrid and electric) crossed 40 percent share for the first time at 40.35 percent (CNG 24.33 percent, hybrid 8.27 percent and EV 7.75 percent).

“On the channel side, PV inventory increased by 1 day over May-end to 32–34 days, moving further from FADA’s recommended 21-day benchmark. We once again urge PV OEMs to calibrate dispatches to retail through the monsoon-soft July window so that dealer capital is not locked in aged stock,” said the executive.

Going forward, FADA has maintained a constructive outlook with all eyes on the onset of monsoon making up its deficit with kharif sowing gathering pace and supplies staying normalised following the West Asia ceasefire and easing crude prices.

Vigneshwar said, “For the two-wheeler segment, improving rural cashflows once rainfall catches up and the accelerating shift towards EV and fuel-efficient models should provide support, though deficient-rainfall pockets and the July OEM price hikes may keep some buyers in wait-and-watch mode. Passenger Vehicles enter the month with healthy booking pipelines, particularly in EVs and CNG, and fresh launches, while Commercial Vehicles should stay steady on freight and infrastructure-linked activity. The trajectory of the monsoon remains the single most important variable for rural demand, alongside price-hike absorption and financing turnaround times. Overall, the outlook for July’26 appears Cautiously Optimistic – with monsoon catch-up and rural cashflows the key swing factors ahead of the festive season.”

For Q2 FY2026, FADA expects continued sales momentum through the festive season. But dealers have identified a monsoon shortfall / El Niño could impact rural demand as the single biggest risk, followed by further price hikes affecting affordability and inventory pile-up pressure.

FADA expects that easing geopolitical and fuel-price uncertainty and broad policy continuity will provide a supportive runway into the festive quarter, with the monsoon the key monitorable for Bharat.

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