Ashok Leyland has reportedly asked the government to consider larger incentives for scrapping old commercial vehicles to speed up fleet replacement, as per PTI reports.
Managing Director and Chief Executive Officer Shenu Agarwal said the current scrapping policy has not led to a strong shift among truck owners. He said financial support in the Union Budget could encourage owners to replace ageing vehicles and generate fresh demand.
India’s truck fleet has an average age of more than 10 years, compared with a historical replacement cycle of 7 to 8 years.
Agarwal said consumption-led freight demand has improved following policy changes such as GST 2.0, which supported cargo movement. He said the demand cycle in the commercial vehicle market is expected to persist for some time.
The government has been setting up authorised vehicle scrapping facilities to support the policy framework. Agarwal said an initial push is required to build the habit of scrapping old trucks.
He suggested incentives linked to vehicle tonnage, with higher support for larger trucks, while smaller vehicles could receive lower incentives. He said scrappage should remain voluntary.
Ashok Leyland recently reintroduced the Taurus and Hippo heavy-duty trucks. The models are built on the AVTR modular platform and are designed for mining, infrastructure, and construction applications.
They are powered by A-Series 6-cylinder engines and offer multiple configuration options for different operating requirements.
As per the reports, the company has increased its annual capital expenditure to around ₹1,000 crore, up from ₹300-400 crore earlier. It is also planning a manufacturing facility in Saudi Arabia with an initial production capacity of about 10,000 units per year.
Approvals have been obtained, and the company is in the process of finalising the location.
As of January 27, 2026, 9:30 am, Ashok Leyland share price was trading at ₹191.24, a 0.90% decrease from the previous closing price.
Read More: Ashok Leyland Expands into Uttar Pradesh with Landmark ₹1,000 Crore Electric Bus Plant!
Ashok Leyland said higher scrappage incentives could help replace ageing trucks, support industry demand, and reduce emissions, alongside ongoing investments in products and overseas manufacturing capacity.
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Published on: Jan 27, 2026, 10:56 AM IST
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