Domestic CV wholesale volumes witnessed a 27.2% YoY growth in December 2025, while retail volumes witnessed a 24.6% YoY growth, with GST rate cuts being the primary driver. Domestic CV wholesale volumes reported a 10.1% YoY growth in 9M FY2026. ICRA expects the domestic CV wholesale volumes to register a 7-9% YoY growth in FY2026, with frontloading of Government capex in H1 FY2026 likely to result in some moderation in volume growth momentum in Q4 FY2026.

• The Indian commercial vehicle (CV) wholesale volumes reported a robust 27.2% YoY growth in December 2025 with a sequential growth of 16.1%. The YoY growth was primarily driven by the goods & services tax (GST) rate cut to 18% from 28% with effect from September 22, 2025, and was also supported by higher freight activity in the goods segment. Overall, the domestic CV wholesale volumes grew by 10.1% YoY in 9M FY2026. CV retail volumes reported a healthy 24.6% YoY growth in December 2025, while registering a 9.7% sequential decline.
• Retail volumes in the medium and heavy commercial vehicle (M&HCV) segment witnessed a robust growth of 27.9% on a YoY basis in December 2025 while recording a sequential decline of 4.3%. The YoY growth in retail volumes for the M&HCV segment in 9M FY2026 stood at 5.1%, with volume growth momentum picking up, post the implementation of GST rate cuts.