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News: Ashok Leyland has announced that it has secured an order to supply 1,475 BSVI diesel fuel type passenger bus chassis to the Tamil Nadu State Transport Corporation. This order is valued at approximately ₹ 345.58 Crores. The execution of the contract is scheduled between December 2024 and May 2025.
Views: Domestic CV volumes were muted in H1FY25 due to various reasons. With heavy capex allocated for infrastructure development in FY25E, CV demand is poised to pick up in coming months. Ageing fleet, overall economic growth and stable diesel prices is also expected to support fleet expansion and replacement demand. Buses segment is the solace space for the domestic CV industry which is currently witnessing a growth trend. With the increase in orderbook, Ashok Leyland will further drive the sales of buses domestically.
Impact: Positive