New Delhi, July 7
Commercial Vehicle (CV) wholesale volumes in India are expected to recover by around 2–5 per cent in FY26 after registering a subdued growth in the past two financial years, a report said on Monday.
The medium and heavy commercial vehicle (MHCV) segment is projected to grow by 4–6 per cent in the current financial year, while light commercial vehicle (LCV) segment is expected to grow by 2–4 per cent in the same period, a CareEdge Ratings report showed.
“The commercial vehicle (CV) industry is expected to experience moderate growth, with overall sales volume likely to improve by around 2-5 per cent YoY in FY26,” said Arti Roy, Associate Director, CareEdge Ratings.
The recovery will be driven by increased infrastructure activity, improved rural sentiment on the back of normal monsoon forecast, more attractive vehicle financing due to recent interest rate cuts, and ongoing fleet replacement — particularly in the bus segment — spurred by ageing vehicles, road tax concessions available for new vehicles under the scrappage policy for older vehicles and the transition to electric vehicles (EVs), Roy explained.
Muted growth in FY25 was due to a slowdown in demand in both MHCV and LCV segments. Despite the low demand, MHCV volumes saw a modest increase of 1.2 per cent, the report stated, whereas LCV volumes declined by 0.3 per cent.