Domestic CV wholesale volumes witnessed a 16.5% YoY growth in April 2026, while retail volumes rose by 15.0% YoY, with GST rate cuts being the primary driver. ICRA expects domestic CV wholesale volumes to register a moderate 4-6% YoY increase in FY2027, with the broadened base effect of FY2026 likely to have some bearing on growth momentum in FY2027.

The Indian commercial vehicle (CV)* wholesale volumes reported a healthy 16.5% year-over-year (YoY) growth in April 2026 while witnessing a sequential decline of 27.8%. The YoY growth was primarily driven by sustained demand stemming from the Goods & Services Tax (GST) rate cut to 18% from 28% with effect from September 22, 2025. The demand momentum was also supported by higher freight activities in the goods segment. Overall, the domestic CV retail volumes reported a healthy 15.0% YoY growth in April 2026, while recording a sequential decline of 3.1%.

Retail volumes in the medium and heavy commercial vehicle (M&HCV) segment witnessed a healthy growth of 11.8% on a YoY basis in April 2026 and a sequential increase of 0.6%. The volume growth momentum in the segment had picked up post the implementation of GST rate cuts and is also driven by infrastructure-led freight movement and school-bus replacement demand picking up ahead of the new academic year. The M&HCV segment reported a 10.1% YoY growth in retail volumes in FY2026.

EXHIBIT 1: Trend in monthly domestic CV wholesale sales volumes and YoY growth

Source: BSE, ICRA Research; Note: Data reflects the aggregate wholesale volumes of five listed CV OEMs, which account for ~95% of CV sales in the country.