After reporting a 0.4% YoY decline in wholesale volumes in Q1 FY2026, the domestic CV industry witnessed an 8.8% YoY increase in Q2 FY2026, with GST rate rationalisation supporting demand towards the end of the quarter. With this, the domestic wholesale CV volumes reported a 4.2% YoY growth in H1 FY2026. ICRA expects the domestic CV industry volumes to register 3-5% growth on a YoY basis in FY2026, following a couple of years of flattish volumes.

• ICRA forecasts the Indian commercial vehicle (CV) industry wholesale volumes to see a modest YoY growth of 3-5% in FY2026, following a marginal 1% YoY decline in FY2025. The domestic CV wholesale volumes expanded by 4.2% in H1 FY2026 (4.5% YoY in 7M FY2026) supported by progress in execution of infrastructure projects and steady demand from logistics activity.
• The domestic medium and heavy commercial vehicle (M&HCV) (trucks) wholesale volumes reported a marginal 1.3% YoY increase in H1 FY2026 and are expected to grow by 0-3% YoY in FY2026 after posting a 4% YoY decline in FY2025.