• Commercial vehicle demand: Ashok Leyland delivered record Q1 volumes as the MHCV industry expanded by 13% to 14%, and management expects full-year MHCV market growth in the high single digits with LCVs growing at an even faster pace.
• Margin recovery outlook: After a 1% margin decline in Q1 and continued commodity cost pressure in Q2, margins are expected to recover as commodity pricing softens in Q3 and turns around in Q4, supported by pricing actions and cost optimization.
• Switch Mobility expansion: Having achieved EBITDA and PAT profitability, the EV subsidiary aims to become cash flow positive this year or next, recently securing an order for 650 electric buses while maintaining over 40% market share in the 2 to 3.5-ton LCV segment.
• International operations recovery: International volumes declined 17% to 18% year-on-year in Q1 due to labor and material constraints at the Ras Al-Khaimah plant in the UAE, but the facility has returned to full production and is expected to hit peak output by August and September.