The Indian commercial vehicle (CV) wholesale volumes reported a robust 27 per cent year-on-year (YoY) growth to 99,544 units in January, along with a sequential growth of 1.9 per cent over 97,682 units recorded in December 2025, a report showed on Tuesday.
The year-on-year growth was primarily driven by the reduction in Goods and Services Tax (GST) rate to 18 per cent from 28 per cent, effective September 22, 2025 and was further supported by increased freight activity in the goods segment, according to ICRA.
Retail volumes in the medium and heavy commercial vehicle segment (M&HCV) witnessed a healthy growth of 15.4 per cent on a YoY basis in January while recording a sequential growth of 22.1 per cent. The retail volume growth in the M&HCV segment during the 10 months of FY26 stood at 6.3 per cent, indicating improving volume momentum following the implementation of GST rate cuts.
Moreover, according to the report, retail volumes in the light commercial vehicle (LCV) segment grew by 14.9 per cent YoY in January. The YoY growth in retail volumes of the LCV segment during 10 months of FY26 stood at 11.1 per cent. Overall, the domestic CV wholesale volumes grew by 11.3 per cent (on-year) “during 10M FY2026, while retail volumes registered an 8.5 per cent growth during the same period”, said the report. The domestic CV industry is expected to register a moderate YoY growth of 7-9 per cent in wholesale volumes in FY26.
Domestic CV wholesale volumes are further projected to register a moderate YoY growth of 4–6 per cent in FY2027. The M&HCV (trucks) and LCV (trucks) segments are expected to witness YoY volume growth of 7-9 per cent and 9-11 per cent, respectively. The buses segment is likely to see an 8-10 per cent YoY growth during the fiscal, said the report.