Ashok Leyland: AC Cabin Mandate to Push Truck Prices Up by 1.5 Percent

Ashok Leyland has said the government’s new rule for AC cabins in heavy trucks will raise prices by around 1.5%, but it won’t slow commercial vehicle demand. The medium and heavy commercial vehicle (M&HCV) segment, it added, is already prepared. The rule, effective June 8, will apply to trucks between 7.5 and 55 tons, aimed at improving long-haul driver efficiency.

“The overall cost to consumers will go up by 1.5%, depending on the category, configuration, and application,” said Sanjeev Kumar, President and Head of M&HCV at Ashok Leyland.

The company believes that demand won’t dip despite the price hike. The commercial vehicle industry has adapted early to the regulation announced in December 2023.“Unlike the situation during the changes in emission norms, we have not seen any pre-buying this time. So the demand remains intact,” Kumar added.

Read More: Commercial Vehicle Forum 2025 Concludes in Pune, Backs EV Push

Sales figures, however, show pressure. In FY25, Ashok Leyland’s domestic M&HCV sales dropped 5% to 93,540 units. In April 2025, sales slipped another 10%, reaching 5,915 units. Still, the company sees the AC cabin mandate as a positive shift.

Kumar noted that 15–20% of trucks in the market already have factory-fitted AC cabins. These cabins, he explained, directly improve driver productivity. “Earlier, monthly vehicle utilization stood at 7,000–8,000 km. Now, we are talking about 15,000–20,000 km,” he said.

With better cabin conditions, trucks are now staying on the road longer. That, according to Ashok Leyland, will improve fleet performance, especially on long-distance routes.

The Chennai-based truck maker has begun production of AC-equipped M&HCVs across all its manufacturing units. The regulation stems from a July 2023 draft, approved by Union Minister Nitin Gadkari, now officially in force.

Meanwhile, Tata Motors, India’s top commercial vehicle maker, has also rolled out factory-fitted AC systems across its entire range. Models including SFC, LPT, Ultra, Signa, and Prima now ship with AC cabins. Even cowl chassis models, for the first time, are part of this update.

By standardizing AC cabins, the industry expects to deliver better working conditions to drivers and smoother operations for fleets. Despite the cost bump, Ashok Leyland and peers see this mandate as a move toward higher productivity, safer driving, and better industry standards.

• Stay updated with 91trucks for more articles and news.
• Subscribe to our YouTube channel.
• Follow us on Facebook, Instagram, and LinkedIn.