The Indian commercial vehicle (CV) wholesale volumes surged by 27% year-on-year to 99,544 units in January, with a 1.9% increase from December 2025. This growth was mainly attributed to the reduction in Goods and Services Tax (GST) rate to 18% from 28% and increased freight activity in the goods segment, as per ICRA.
Retail volumes in the medium and heavy commercial vehicle segment (M&HCV) saw a healthy growth of 15.4% year-on-year in January, with a sequential growth of 22.1%. The retail volume growth in the M&HCV segment for the first 10 months of FY26 was at 6.3%, indicating a positive trend post GST rate cuts.
Additionally, retail volumes in the light commercial vehicle (LCV) segment rose by 14.9% year-on-year in January. The year-on-year growth in retail volumes of the LCV segment for the first 10 months of FY26 was 11.1%.
Domestic CV wholesale volumes grew by 11.3% year-on-year during the first 10 months of FY2026, while retail volumes showed an 8.5% growth during the same period. The industry is forecasted to witness a moderate year-on-year growth of 7-9% in wholesale volumes in FY26, with further projections of 4-6% growth in FY2027.
The M&HCV (trucks) and LCV (trucks) segments are expected to experience year-on-year volume growth of 7-9% and 9-11% respectively. The buses segment is anticipated to see an 8-10% year-on-year growth during the fiscal year.
