New Delhi, Jan. 8 -- India's commercial vehicle industry is finally turning around, and Ashok Leyland looks poised to benefit the most.

After six weak quarters-from April 2024 to July 2025-and negative growth in FY25, the CV upcycle is gaining pace, driven by regulatory reforms, improving macro indicators. A GST cut from 28% to 18% on trucks, tyres, lubricants, and spare parts is also expected to boost small transporter profits by 30-50%, according to InCred Equities.

Truck freight rates have also surged in double digits since April 2025, while lower operating costs are improving fleet utilization and profitability.

These structural changes improve fleet economics and reduce vehicle payback periods by 4-6 months. With the average fleet...