Ashok Leyland, Tata Motors slip 4-7% after reports of likely hike in truck, tractor trailer load capacity

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26 Aug, 2025 12:21

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Commerical vehicle makers Ashok Leyland and Tata Motors dropped 6.8 percent and 4 percent respectively after reports of likely increase in load carrying capacity of trucks and tractor trailers.

Sources told CNBC-TV18 that the government is set to hike load carrying capacity of trucks & tractor trailers. "New rules w.r.t hiking load carrying capacity will be notifed on Tuesday."

CNBC-TV18 is learned that load carrying capacity of heavy trucks will be increased upto 25 percent.

"Gross vehicle weight of a 2-axle truck will be increased from 16.2 to 19 tonne and 3-axle truck to be increased from 25 to 28.5 tonne," sources said, adding gross vehicle weight of a 5-axle truck will be increased from 37 to 43.5 tonne and vehicle weight of tractor trailer with 5 axles to be increased from 44 to 49 tonne.

The major reason for fall in share prices is that the increase in carrying capacity may reduce the demand for commercial vehicles as companies can manage their work with lesser number of trucks or tractor trailers than earlier.

At 14:18 hours IST, the stock price of Ashok Leyland was quoting at Rs 124.70, down 6.13 percent on the BSE while Tata Motors was down 3.65 percent at Rs 254.50 and Eicher Motors down 1.15 percent at Rs 27,284 on the BSE.