India’s commercial vehicle industry kicked off the year with a bang, recording a robust 27% year-on-year increase in wholesale sales for January. A total of 99,544 units were sold, marking a slight 1.9% rise from December’s 97,682 units.
This impressive growth comes on the heels of a significant GST rate cut from 28% to 18% implemented since September 22, 2025, which has spurred demand. Enhanced freight activity across the country has further fueled this upward trajectory, according to industry analysis.
In the medium and heavy commercial vehicle (M&HCV) segment, retail sales jumped 15.4% year-on-year and an even stronger 22.1% month-on-month. Over the first 10 months of FY2026, this segment saw a 6.3% growth, signaling sustained recovery post-GST relief.
Light commercial vehicles (LCV) didn’t lag behind, with retail sales up 14.9% in January alone. For the same 10-month period, LCV sales rose by 11.1%, reflecting broad-based strength.
Overall, domestic CV wholesale sales grew 11.3% and retail 8.5% in the first 10 months of FY2026. Looking ahead, experts forecast a moderate 7-9% growth in wholesale sales for the full FY2026, tapering to 4-6% in FY2027.
Segment-wise, M&HCV trucks are expected to grow 7-9%, LCV trucks 9-11%, and buses 8-10% this fiscal year. This positive outlook underscores India’s resilient logistics sector amid economic expansion.