Domestic CV wholesale volumes witnessed a 26.4% YoY growth in July 2026, while retail volumes rose by 24.0% YoY. ICRA expects domestic CV wholesale volumes to register a moderate 4-6% YoY increase in FY2027. The broadened base effect of H2 FY2026 is likely to result in a YoY volume contraction in the latter half of the current fiscal.

• Retail volumes in the medium and heavy commercial vehicle (M&HCV) segment witnessed healthy YoY growth of 18.8% in July 2026, along with sequential growth of 7.4%. The volume recovery in the segment picked up following the implementation of the GST rate cut on September 22, 2025.
• Retail volumes in the LCV segment rose by 27.6% YoY, with sequential growth of 3.5%. Demand momentum in the LCV segment has also been positively impacted by the GST rate cuts, further supported by improved last-mile freight movement and healthy e-commerce-linked activity. Elevated ownership costs (even after the GST rate cuts), however, remain one of the key challenges for this segment.