Chennai: The escalating conflict in West Asia has disrupted Ashok Leyland's international operations in the fourth quarter of FY26, compelling the commercial vehicle manufacturer to temporarily reduce production at its Ras Al Khaimah facility, leading to a decline in overseas commercial vehicle (CV) volumes.
Impact on Q4 FY26 Performance
The company reported a 3% drop in international business CV volumes during Q4 FY26, totaling 5,322 units, compared to 5,460 units in the same quarter last year. Despite this quarterly setback, the full-year FY26 international volumes grew 19% to 18,082 units from 15,255 units in FY25.
Chairman's Statement
Speaking to TOI on Thursday, Ashok Leyland chairman Dheeraj Hinduja explained that the West Asia conflict impacted production for nearly five to six weeks after the war escalated in the second half of March. He noted, "The GCC is a very important market for us, and we have our plant in Ras Al Khaimah. Naturally, when the war broke out, we had to take certain measures, including slowing down production. Some of the workforce also had to be moved out."
Demand and Recovery
Despite the disruption, Hinduja emphasized that demand in the region, particularly for school buses, remained robust, and operations are gradually normalizing. "There was an impact, but production is picking up again. Demand continues to remain strong, although we are in an uncertain phase because we do not know when a settlement will be reached. For us, ramping up production to meet demand will not be an issue," he added.
