Ashok Leyland continues to be plagued by the chip shortage, which impacts production of light CVs
The Nifty Auto index rose 3.27% on Monday, emerging as the top sectoral performer. There is a general optimism surrounding auto companies due to improving macro-economic outlook. Shares of Ashok Leyland Ltd too basked in this glory, hitting a new 52-week high during the day. This is despite the fact that its commercial vehicle (CV) volumes in July dropped sequentially by 6.2% to 13,625 units, slightly weaker than expectations. True, one factor weighing on volumes is the seasonality.