India’s commercial vehicle (CV) industry recorded a strong 27% year-on-year growth in wholesale sales in January, with total dispatches reaching 99,544 units, according to a report by ICRA Limited.
The January figures also reflect a 1.9% sequential increase compared to 97,682 units sold in December 2025, signaling continued momentum in the sector.
GST Rate Cut and Freight Activity Drive Growth
ICRA stated that the sharp annual growth was primarily driven by the reduction in GST rates from 28% to 18%, effective September 22, 2025. Increased freight movement and improving logistics activity further supported the rise in demand.
M&HCV Segment Sees Strong Retail Growth
The Medium and Heavy Commercial Vehicle (M&HCV) segment registered robust retail growth in January:
- 15.4% year-on-year increase
- 22.1% sequential growth
During the first 10 months of FY2026, M&HCV retail sales grew by 6.3%, reflecting improved demand following the GST rate revision.
LCV Segment Also Posts Double-Digit Growth
The Light Commercial Vehicle (LCV) segment reported:
- 14.9% year-on-year growth in January retail sales
- 11.1% growth during the first 10 months of FY2026
Overall, domestic CV wholesale volumes grew 11.3% year-on-year in the first 10 months of FY2026, while retail sales rose 8.5% during the same period.
Growth Outlook for FY2026 and FY2027
According to the report, the domestic CV industry is expected to post moderate wholesale growth of 7–9% in FY2026, followed by 4–6% growth in FY2027.
Segment-wise projections include:
- M&HCV (Trucks): 7–9% annual growth
- LCV (Trucks): 9–11% annual growth
- Bus Segment: 8–10% annual growth in the current financial year
The positive outlook is supported by improved freight demand, infrastructure development, and sustained policy support, positioning the commercial vehicle industry for steady expansion over the next two years.
