AC Cabin Rule to Hike Truck Prices by 1 to 1.5% — Ashok Leyland Ready for the Shift

By Amit Jangra | Published Date : July 04, 2025

Some truck owners are worried that the new AC cabin rule may lead to higher fuel consumption. They believe running air-conditioners in trucks could increase operating costs.

The Indian trucking industry is set for a major shift. The government has made it mandatory for all medium and heavy commercial vehicles (M&HCVs) to have air-conditioned (AC) cabins starting June 8, 2025. This new regulation will impact trucks between 7.5 tonnes and 55 tonnes and while it will increase the cost of vehicles slightly, companies like Ashok Leyland are already prepared for the change.

Ashok Leyland Fully Geared Up

Also Read - Tata Motors Enhances Driver Comfort with AC Cabins Across Truck Range

Table of Contents

1. Ashok Leyland Fully Geared Up

2. Why the AC Cabin Rule Matters

3. How Much Will It Cost?

4. Going Beyond Basic AC

5. Current Market Outlook

6. Bus Segment Sees Steady Demand

7. Interest Rate Cuts to Help Buyers

8. Ashok Leyland Trucks Ready for AC Cabin Norms — Stay Updated on TrucksBuses.com

9. Conclusion

Leading commercial vehicle manufacturer Ashok Leyland has confirmed that it is fully ready to meet the new AC cabin regulation. The company, based in Chennai, has already started rolling out AC cabin trucks across all its manufacturing plants.

According to Sanjeev Kumar, President and Head of M&HCV at Ashok Leyland, “Currently, all our factories are producing AC cap vehicles.” This means Ashok Leyland is ahead of schedule, as the regulation's original deadline of January 2025 was extended to October 2025, giving manufacturers more time to comply.

Ashok Leyland produces the popular AVTR and BOSS ranges of trucks and this update will apply across its entire product line.

Why the AC Cabin Rule Matters

The idea of having AC cabins in trucks is not new. It was first discussed in 2016, but implementation was delayed due to concerns over increased vehicle costs. With rising temperatures and growing awareness about driver welfare, the rule has now become a priority.

Having an AC cabin is not just about comfort. It also ensures better health, focus and performance of truck drivers, especially in the hot Indian climate. Experts believe it can also help retain skilled drivers, a long-standing issue in the industry.

How Much Will It Cost?

With any regulation comes a cost. For Ashok Leyland commercial vehicles, the company estimates that the new AC requirement will lead to a 1% to 1.5% increase in truck prices. Depending on the model, segment and application, this cost could go up to 2% in some cases.

While this may concern small fleet owners, Ashok Leyland is working to make the transition smoother. Financing companies and NBFCs (Non-Banking Financial Companies) are also adjusting their loan models to help buyers handle the added cost.

Going Beyond Basic AC

Ashok Leyland is not just stopping at standard AC units. The company is also working on offering performance AC systems and HVAC (Heating, Ventilation and Air Conditioning) options. These advanced systems are common in passenger cars and will provide both cooling and heating benefits, especially useful in colder regions.

Kumar stated, “We are actively working on providing 'performance AC' as well as HVAC as an option for our customers.” This move shows Ashok Leyland’s focus on driver comfort and product innovation.

Current Market Outlook

Despite a slight 3% decline in the commercial vehicle market during FY25, Ashok Leyland remains optimistic. Sanjeev Kumar said the company expects single-digit growth in FY26, supported by government spending, e-commerce growth and recovery in sectors like cement and steel.

While the second quarter of FY25 saw a slowdown in construction activities, the market picked up strongly in Q4. “This led to good demand on our tippers,” Kumar said, highlighting the positive momentum.

In the first two months of FY26, Ashok Leyland has already seen promising trends. Post-monsoon, the company expects demand to rise even more.

Bus Segment Sees Steady Demand

It’s not just trucks. Ashok Leyland’s passenger commercial vehicles, especially buses, are also doing well. Schools and staff transport services are steadily buying new buses, catching up with delayed purchases due to COVID-19.

Kumar estimates that the bus segment will grow by 3–5% in the current financial year. Government transport departments are also placing orders, which is helping boost confidence in the segment.

Interest Rate Cuts to Help Buyers

A recent interest rate cut by the Reserve Bank of India could support the entire industry. Sanjeev Kumar welcomed the move, saying it will lower the total cost of ownership for buyers and encourage new purchases.

As banks pass on the benefits to customers, it will make it easier for transporters to invest in new trucks, even with the slight cost hike due to the AC regulation.

Ashok Leyland Trucks Ready for AC Cabin Norms — Stay Updated on TrucksBuses.com

The government will soon require all medium and heavy trucks to have air-conditioned cabins. This new rule is expected to increase truck prices by around 1 to 1.5 percent. Ashok

Leyland is fully prepared and has already started making trucks with AC cabins. For more updates and details on Ashok Leyland trucks, visit TrucksBuses.com today.

Conclusion

The new AC cabin rule marks a major step in improving working conditions for truck drivers across India. While the regulation may slightly raise prices, leading companies like Ashok Leyland are already leading the way with compliant and upgraded vehicles.

From Ashok Leyland trucks to passenger buses, the company is setting a strong example of how the commercial vehicle industry can evolve, not just to meet regulations, but to offer better value and comfort to customers and drivers alike.

Also Read - Govt Mandates AC Cabins in All Trucks from 2025

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Frequently Asked Questions on Trucks

Q1: What is the new AC cabin rule for trucks?

Ans: The Indian government has made it mandatory for all medium and heavy trucks (7.5 to 55 tonnes) to have air-conditioned cabins starting from June 8, 2025.

Q2: Why is the AC cabin rule being introduced?

Ans: The rule is aimed at improving driver comfort, health, and safety. AC cabins can reduce driver fatigue and help retain skilled drivers.

Q3: How will the AC cabin rule affect truck prices?

Ans: According to Ashok Leyland, truck prices will increase by around 1% to 1.5%, depending on the model and segment.

Q4: Which Ashok Leyland trucks will come with AC cabins?

Ans: AC cabins will be available across all Ashok Leyland medium and heavy trucks, including the AVTR and BOSS series.