Ashok Leyland Share Price in Focus: Announced Price Hike For Commercial Vehicles

Ashok Leyland announced on Friday, December 13, that it will increase the prices of its entire range of commercial vehicles by up to 3%, effective from January 2025. The company clarified that the price hike will vary depending on the specific model and variant.

Why Increase in Prices?

The price increase is attributed to inflation and higher commodity prices, which have led to increased input costs. Ashok Leyland stated that this adjustment will help mitigate some of the impacts of rising production costs.Earlier, the company’s close competitor Tata Motors also revealed a price increase across its trucks and buses portfolio by up to 2%, effective from January 1, 2025. The company explained that this price increase is similarly aimed at offsetting the rise in input costs.

Ashok Leyland Business Update

• On Thursday, December 12, Ashok Leyland secured an order worth ₹345.58 crore from the Tamil Nadu State Transport Corporation. The order is for the supply of 1,475 BSVI diesel passenger bus chassis. The delivery is expected between December 2024 and May 2025, following a standard tendering process.
• Ashok Leyland also announced the voluntary liquidation of its step-down subsidiary, LLC Ashok Leyland Russia, as part of its ongoing restructuring efforts.

As of 11:27 AM on Friday, December 13, Ashok Leyland shares were trading 1.13% lower at ₹227.55 per share.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.