Domestic CV wholesale volumes rose by 23.8% (YoY) in February 2026, while retail volumes increased by 28.9% (YoY), with GST rate cuts continuing to support demand. Domestic CV wholesale volumes grew by 12.5% (YoY) in 11M FY2026. Given the strong demand momentum post GST rate cut, ICRA expects the actual FY2026 wholesale volume increase to overshoot ICRA’s growth estimate of 7-9% (YoY). ICRA estimates wholesale volumes to expand by 4-6% in FY2027.

The Indian commercial vehicle (CV) wholesale volumes reported a robust 23.8% YoY growth in February 2026 with a sequential decline of 2.4%. The YoY increase was primarily driven by the goods & services tax (GST) rate cut to 18% from 28% with effect from September 22, 2025, along with higher freight activity in the goods segment, e-commerce and infrastructure-led demand.

Retail volumes in the medium and heavy commercial vehicle (M&HCV) segment witnessed a substantial growth of 35.6% on a YoY basis in February 2026 while recording a sequential growth of 3.1%. The YoY increase in retail volumes for the M&HCV segment in 11M FY2026 stood at 9.0%, with volume growth momentum picking up post the implementation of GST rate cuts.