Commercial Vehicle Sales Expected to Rise 3–5% This Fiscal Year: Report

By Amit Jangra | Published Date : August 29, 2025

India’s commercial vehicle sales may grow 3–5% in FY2026, driven by construction activity and rising demand in the truck and bus segments.

New Delhi: India’s commercial vehicle sector seems to be picking up pace, with a 3–5% growth in dispatches expected in FY2026, according to a new report by ICRA, a credit rating agency.

After a small dip of 1.2% in the previous fiscal year, this update is a welcome sign for manufacturers and dealers alike.

A Mixed Month, But Signs of Recovery

Table of Contents

1. A Mixed Month, But Signs of Recovery

2. Trucks, Buses What’s Powering Demand

3. So, What Does This Mean?

Read More: Buying a Three-Wheeler Made Easy with Piaggio and Hinduja Leyland Finance Partnership

According to the report, commercial vehicle dispatches in July 2025 were up by 6.1% when compared to the same month last year. That sounds like good news — and it is — but there’s more to the story. Compared to June 2025, the numbers actually slipped by around 2.7%.

The numbers aren’t exactly consistent, some are up, others down. Still, if you take a step back, things do appear to be moving forward.

Trucks, Buses What’s Powering Demand

According to ICRA, different parts of the market are showing different levels of activity:

• Medium and Heavy Commercial Vehicles (M&HCVs) are expected to grow slowly — maybe around 0–3%.
• Light Commercial Vehicles (LCVs) look slightly stronger, with a 3–5% forecasted bump.
• The bus segment, surprisingly, is leading the charge, with 8–10% growth likely.

What’s causing this rise? A few things. There’s steady momentum in construction and mining, which tends to push truck demand. The replacement cycle for older buses is also picking up — think schools, state transport fleets, even private players getting ready for better services.

So, What Does This Mean?

The Indian CV industry seems to be heading toward modest recovery, not a boom. That might sound lukewarm, but in a sector known for big swings, stable growth is often seen as a good sign.

Still, challenges remain, fuel prices, lending rates, even weather patterns could impact how things unfold. It's not a clear road ahead, but there’s certainly some movement.

Fleet operators, small logistics firms and commercial buyers might want to start planning upgrades now, especially in segments where demand is building.

Also Read: Best Electric Pickup Trucks to Watch Out for in 2026

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Frequently Asked Questions on Commercial Vehicles

1. What is the expected growth in India’s commercial vehicle market for FY2026?

Ans: The commercial vehicle market is expected to grow by 3–5% in FY2026, according to ICRA.

2. Which CV segments are driving the growth?

Ans: Light commercial vehicles and buses are expected to lead, with projected growth of 3–5% and 8–10%, respectively.

3. Why are bus sales expected to rise more sharply?

Ans: Bus sales are likely to increase due to rising replacement demand from schools, public transport private fleet operators.

4. What caused the slight decline in FY2025?

Ans: FY2025 saw a 1.2% dip in wholesale volumes due to demand slowdown and market correction after previous high growth periods.

5. How does construction activity affect CV sales?

Ans: Increased infrastructure and mining projects create higher demand for trucks, especially medium and heavy commercial vehicles.