Research Report

Domestic CV wholesale volumes witnessed a substantial 26.5% YoY growth in September 2026, while retail volumes rose by 37.6% YoY. Domestic wholesale volumes grew 23.8% YoY in H1 FY2027. ICRA expects domestic CV wholesale volumes to register a moderate 4-6% YoY increase in FY2027, with the broadened base effect of H2 FY2026 likely to result in a YoY volume contraction in the latter half of the current fiscal.

Indian commercial vehicle (CV)* wholesale volumes reported a strong 26.5% year-on-year (YoY) growth in September 2026 while witnessing a sequential growth of 16.9%. For H1 FY2027, the CV wholesale volumes grew by 23.8% on a YoY basis. The growth momentum in domestic CV sales volume was supported by infrastructure execution, mining activity, e-commerce-linked logistics and steady financing availability, while strong growth in the light commercial vehicle (LCV) segment, in particular, reflected healthy last-mile transportation activities. The domestic CV retail volumes reported a 37.6% YoY growth in September 2026, while recording a sequential growth of 14.1%.

Retail volumes in the medium and heavy commercial vehicle (M&HCV) segment grew by 43.4% YoY in September 2026 with a sequential growth of 18.3%. The volume growth momentum in the segment picked up after the implementation of the Goods & Services Tax (GST) rate cut with effect from September 22, 2025, and was further supported by strong rural demand, higher logistics activity, and sustained infrastructure-linked transportation requirements. Demand was particularly aided by increased movement from cement, steel and mining sectors.

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* who account for ~95% of CV sales in the country.