Steady Road Ahead: Modest Growth Forecast in Commercial Vehicle Sector
Rating agency Icra projects a 3-5% volume growth in domestic commercial vehicle dispatches for FY2026. M&HCV and LCV truck segments will see moderate growth, while buses are expected to experience 8-10% growth. Demand is supported by increased construction activities and institutional demand.
- Country:
- India
According to rating agency Icra, commercial vehicle dispatches to dealers are projected to experience a volume growth of 3-5% year-on-year in the current fiscal year.
While domestic commercial vehicle wholesale volumes showed a 6.1% increase in July 2025 compared to the previous year, volumes fell 2.7% sequentially. Icra forecasts a modest 3-5% year-on-year growth in wholesale volumes for FY2026.
The medium and heavy commercial vehicle (M&HCV) trucks and light commercial vehicle (LCV) trucks are anticipated to grow by 0-3% and 3-5%, respectively. The bus segment, however, is likely to see an 8-10% growth, driven by replacement demand and increased institutional orders.
(With inputs from agencies.)
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