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India's CV Sales Surge 27% in Jan, Set for 7-9% Growth in FY26

India's commercial vehicle industry reported a robust 27% year-on-year growth in wholesale volumes for January 2026. This surge is largely attributed to the reduction in the Goods and Services Tax rate from 28% to 18%, implemented in September 2025. Both the Medium & Heavy Commercial Vehicle and Light Commercial Vehicle segments showed strong retail growth of over 14% in January. The industry is projected to register a moderate wholesale volume growth of 7-9% for the full fiscal year 2025-26.

Key Points: India Commercial Vehicle Sales Grow 27% in January

  • 27% YoY wholesale growth in Jan
  • GST rate cut to 18% key driver
  • M&HCV retail grew 15.4% YoY
  • FY26 growth projected at 7-9%
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India's commercial vehicle industry clocks robust sales in Jan, to grow 7-9 pc in FY26

India's commercial vehicle wholesale volumes surged 27% YoY in Jan 2026, driven by GST cuts. Industry projected to grow 7-9% in FY26.

"during 10M FY2026, while retail volumes registered an 8.5 per cent growth during the same period - ICRA report"

New Delhi, Feb 24

The Indian commercial vehicle wholesale volumes reported a robust 27 per cent year-on-year 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.

- IANS

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Reader Comments

S
Shreya B
As someone whose family is in the transport business, I can feel this growth on the ground. Freight rates have stabilised a bit and there's more consistent work. The LCV growth is particularly encouraging for small business owners and last-mile delivery networks.
A
Aman W
Good numbers, but I hope this growth is sustainable and not just a short-term GST sugar rush. The industry needs to focus on electric and alternative fuel vehicles too. The future is green, and our commercial vehicle sector must lead that transition.
P
Priya S
The bus segment growth projection of 8-10% is heartening. Better public transport connectivity, especially in semi-urban and rural areas, is crucial for development. Hope state transport corporations are placing big orders for modern, comfortable buses.
V
Vikram M
Wholesale numbers are up, but what about the actual health of the truck owners? High fuel costs, tolls, and maintenance are still big headaches. Growth in sales is one thing, profitability for the people driving them is another. Hope that is also being looked into.
K
Karthik V
Solid performance! This reflects the underlying strength of the Indian manufacturing and consumption story. When CVs do well, it's a leading indicator for the broader economy. FY27 projection of 4-6% seems realistic, not overhyped. Good, steady growth is what we need.

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