Commercial Vehicle Industry Moving Towards Record Level

By Jony Shekhawat | Published Date : April 24, 2026

CRISIL says India’s commercial vehicle industry may reach record sales by FY2027, with steady growth driven by strong domestic demand and infrastructure activity.

CRISIL says India’s commercial vehicle industry may reach a record level by FY2027. Total sales can go near 12.4 lakh units, which is higher than earlier peak. 

Last year growth was strong, around 13 percent. Now growth may slow down a bit to 5–6 percent because numbers are already high.

Strong Demand in Domestic Market

Table of Contents

1. Strong Demand in Domestic Market

2. Different Segments Growing Differently

3. Export Side Facing Some Issues

4. Rising Costs and New Rules Ahead

5. Overall Outlook Still Positive

► Read More: Hyundai–TVS Partnership to Build Future-Ready Electric Three-Wheelers

Most of the demand is coming from inside India. Around 90% sales are from domestic market only. Reason is simple — infrastructure work is increasing and many old vehicles are being replaced. Also GST changes have made buying a little easier. This demand is clearly seen in segments like trucks, mini trucks and pickups, which are used daily for transport.

Different Segments Growing Differently

Light commercial vehicles hold the biggest share, around 60%. They are growing because of ecommerce and delivery work. Medium and heavy trucks may grow slower, around 4–5%. One reason is rail transport is increasing for long distance. Bus segment may grow around 3–4%, mainly because of electric bus orders coming in.

Export Side Facing Some Issues

Exports may not grow fast this time. Growth can slow to around 2–4%. One main reason is shipping issues in West Asia. Many vehicles are exported there, so delay and cost both are increasing.

Rising Costs and New Rules Ahead

Companies are also facing cost pressure. Prices of steel, aluminium and fuel are going up. Because of this, profit margins may go slightly down. Also new rules like safety systems and BS7 norms can make vehicles more expensive.

Overall Outlook Still Positive

Even with these problems, industry outlook is still okay. Companies are planning to invest around ₹5,500 crore every year. Focus is on improving production and following new rules. Demand is expected to stay stable. So in coming time, trucks, mini trucks and pickups will still see demand, even if growth is not very fast.

You Might Like: Electric Truck Push: Drivn & Energy in Motion Plan 1,000 Deployments in India

---

Frequently Asked Questions on Commercial Vehicles

Q1. What is the expected size of the CV industry by FY2027?

Ans: It may reach around 12.4 lakh units, a record level.

Q2. What is driving this growth?

Ans: Infrastructure projects, replacement demand and better affordability.

Q3. Which segment has the highest share?

Ans: Light commercial vehicles hold around 60% of total volume.

Q4. What challenges is the industry facing?

Ans: Rising costs, export slowdown and new regulatory requirements.

---

Join us for the latest updates on the Truck Industry -

☞  Facebook 

☞  Instagram

☞  YouTube

☞  Twitter

☞  LinkedIn

☞  Threads

Join Our WhatsApp Channel