Domestic CV wholesale volumes witnessed a healthy 11.4% YoY growth in October 2025, while retail volumes witnessed a robust 17.7% YoY growth, with GST rate cuts supporting the demand momentum. Domestic CV wholesale volumes reported a 4.5% YoY growth in 7M FY2026. ICRA expects Indian CV industry wholesale volumes to witness YoY growth of 3-5% in FY2026, aided by resumption of construction and infrastructure activities (which were muted around the General Elections) and steady economic environment.

• In the medium and heavy commercial vehicle (M&HCV) segment, in October 2025, retail sales volumes witnessed a slight decline of 1.4% on a YoY basis, while recording a sequential growth of 26.0%. Sequential growth was largely influenced by lower volumes in September due to speculation around potential GST reductions. Postponement of new vehicle purchases by many fleet operators ahead of rollout of BS-VII-compliant vehicles, however, led to the said YoY decline in volumes.
• Retail volumes in light commercial vehicle (LCV) segment in October 2025 grew 29.8% on a YoY basis, while reporting a sequential growth of 64.3%, driven by logistics demand from rural areas, and supported by GST 2.0 reforms and a strong festive buying sentiment. Cannibalisation from the electric three-wheelers (e-3W) segment and increasing preference for pre-owned vehicles over new vehicles in this segment are few of the headwinds for this segment.