Commercial Vehicles Surge in Domestic Market: A Look Beyond 2023

The domestic commercial vehicle industry is poised to achieve an unprecedented volume of 12.4 lakh units in this fiscal year, breaking the previous record of fiscal 2019, as per a report by Crisil. The growth trajectory follows a robust 13 percent rebound in the recently concluded financial year.

A catalyst for this growth is the GST rate cut from 28 percent to 18 percent that occurred in September 2025, enhancing affordability of purchases. Other contributory factors include reduced interest rates, improved freight utilization, and a resurgence in infrastructure and mining activities.

However, potential challenges loom with exports likely to face disruption due to developments in West Asia. The analysis by Crisil, which covers the majority of the CV market, indicates that while domestic demand remains strong, external factors could impact export volumes significantly.

(With inputs from agencies.)