# Weak Monsoon, 30%+ Sales Growth: 2 CV Stocks to Watch

> Tata Motors and Ashok Leyland report 42.7% and 31.7% sales growth despite weak monsoon and Middle East crisis.
- Title: Weak Monsoon, 30%+ Sales Growth: 2 CV Stocks to Watch
- Summary: Tata Motors and Ashok Leyland report 42.7% and 31.7% sales growth despite weak monsoon and Middle East crisis. Tata Motors and Ashok Leyland achieved strong…
- Keywords: tata motors, ashok leyland, cv stocks, monsoon, middle east crisis, sales growth, fy27, commercial vehicles, gdp growth, gst cut, business, money
- Source: Financialexpress — https://financialexpress.com/market/stock-insights/weak-monsoon-30-sales-growth-2-cv-stocks-to-watch-now/4353016
- Author: Amriteshwar Mathur
- Published: 2026-10-04T00:00:00+00:00
- Read time: 1 min
- Topics: tata motors, ashok leyland, cv stocks, monsoon, middle east crisis, sales growth, fy27, commercial vehicles, gdp growth, gst cut, business, money
## Strong CV Sales Growth
Tata Motors reported 42.7% y-o-y vehicle sales growth in September 2026 quarter to 135,114 units.
## Ashok Leyland Sales Surge
Ashok Leyland achieved 31.7% y-o-y vehicle sales growth to 64,677 units in Q2 FY27.
## Monsoon and Middle East Impact
The monsoon season was broadly deficient in Maharashtra and Karnataka, and the Middle East crisis persisted.
## Tata Motors' Overseas Sales
Tata Motors saw a 177.3% y-o-y jump in overseas sales to 21,132 units, driving 42.7% growth.
## Domestic Sales Growth
Domestic CV sales grew 30.9% y-o-y to 113,982 units, supported by e-commerce and FMCG demand.
## Ashok Leyland's Growth Drivers
Ashok Leyland's medium and heavy commercial vehicles benefited from sustained infrastructure and construction activity.
## Tata Motors' GST Benefit
The 18% GST cut on trucks and buses from 22 September 2025 provided a cushion for CV makers.
## Margin Pressure
Tata Motors' operating profit margin declined marginally y-o-y to 10.2%, while Ashok Leyland's dropped 110 basis points to 10%.
## Tata Motors' Tender Offer
Tata Motors launched a voluntary tender offer for Iveco Group ending 26 October 2026.
## Merged Entity Projections
The merged entity would have Euro 21 billion revenue split across Europe, India, South America, and the rest of the world.
## Stock Valuations
Tata Motors trades at a standalone P/E of 22.9, while Ashok Leyland trades at 23.0.
## Future Outlook
Both companies expect continued growth despite monsoon deficits and Middle East crisis.
## Key takeaway

Tata Motors and Ashok Leyland achieved strong vehicle sales growth in Q2 FY27 amid weak monsoon and Middle East crisis.