New Delhi: India’s commercial vehicle (CV) industry recorded robust growth in January, with wholesale volumes rising 27 per cent year-on-year (YoY) to 99,544 units, according to a report released on Tuesday.

The sector also posted sequential growth of 1.9 per cent compared to 97,682 units sold in December 2025, signalling sustained demand momentum in the domestic market.

GST cut, freight demand drive CV sales growth

The sharp YoY rise in commercial vehicle sales was largely attributed to the reduction in the Goods and Services Tax (GST) rate from 28 per cent to 18 per cent, effective September 22, 2025. Increased freight activity in the goods transport segment further supported the uptick, the ICRA report said.

Overall, domestic CV wholesale volumes grew 11.3 per cent during the first 10 months of FY26, while retail volumes registered an 8.5 per cent increase over the same period.

M&HCV segment posts healthy gains

Retail volumes in the medium and heavy commercial vehicle (M&HCV) segment rose 15.4 per cent YoY in January, alongside a strong sequential growth of 22.1 per cent.

During the first 10 months of FY26, M&HCV retail volumes grew 6.3 per cent, indicating improving traction following the GST rate reduction.

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LCV segment continues steady expansion

The light commercial vehicle (LCV) segment also reported healthy performance, with retail volumes increasing 14.9 per cent YoY in January.

For the April–January period of FY26, LCV retail volumes expanded 11.1 per cent compared to the previous year.

Outlook: 7–9% growth projected for FY26

The domestic commercial vehicle industry is projected to register moderate wholesale growth of 7–9 per cent in FY26. For FY27, CV wholesale volumes are expected to grow at a slower pace of 4–6 per cent YoY.

Segment-wise, M&HCV (trucks) and LCV (trucks) are forecast to record volume growth of 7–9 per cent and 9–11 per cent, respectively, in FY26.

The buses segment is likely to expand by 8–10 per cent during the fiscal year, reflecting steady replacement demand and improved public transport procurement.

Industry analysts note that policy support, freight demand, infrastructure spending and replacement cycles will remain key drivers of commercial vehicle sales growth in India.

IANS