ICRA reports 27% YoY growth in January 2026 domestic CV wholesales to 99,544 units, driven by GST demand

By Amit Jangra | Published Date : February 27, 2026

ICRA reports 27% rise in January 2026 CV wholesales to 99,544 units. GST cut boosted demand, with M&HCV and LCV segments showing strong growth.

January turned out to be a strong month for the CV industry. As per ICRA, wholesale numbers increased by 27% and reached 99,544 units. This was a big improvement over last January. On a monthly basis also, the numbers improved by 1.9% over December 2025, when 97,682 units were sold.

The growth clearly shows that demand in the trucks and commercial vehicle market has picked up after many slow months. Industry people are saying that better freight movement and policy support helped the sector. The improvement was visible in both wholesale and retail markets, though growth pace was slightly different in each segment.

GST Cut Boosts Demand Across Segments

Table of Contents

1. GST Cut Boosts Demand Across Segments

2. M&HCV Segment Shows Strong Recovery

3. LCV Segment Sees Faster Uptick

4. Outlook For FY26 And Beyond

Read More: BKT Launches Two-Wheeler and Commercial Vehicle Tyres in India’s On-Highway Market

Sales picked up mainly because GST was reduced. The government lowered the tax from 28% to 18% on September 22, 2025, which gave relief to customers. After this decision, demand improved quickly, especially in the goods transport category.

In the first 10 months of FY26, domestic CV wholesale volumes increased 11.3% YoY, while retail volumes went up by 8.5%. This shows that market sentiment is better than before, but still not fully stable. Many fleet owners started buying new trucks, mini trucks and pickups after the tax cut because overall vehicle cost came down.

M&HCV Segment Shows Strong Recovery

The medium and heavy truck segment did well in January. It recorded a 22.1% rise over December numbers. Retail volumes in this category increased 15.4% YoY during the month. For the first 10 months of FY26, M&HCV retail growth stood at 6.3%, showing that momentum improved after GST reduction.

However, ICRA has also warned that growth in this segment may slow down in the coming months of FY26. The reason is simple — the sudden demand push after GST cut may not continue at same speed. Once the benefit effect becomes normal, volumes can stabilise a bit.

LCV Segment Sees Faster Uptick

In January, the LCV segment saw better sales. Retail numbers went up by 14.9% compared to last year. This segment includes mini trucks and pickups. On a sequential basis, it saw a sharp 33% jump. This segment reacted faster to the GST cut because buyers in this category are more price-sensitive.

Still, high funding cost remains a challenge for small operators. Loan rates are not very low and that is affecting some buying decisions.

Outlook For FY26 And Beyond

For full FY26, ICRA expects domestic CV wholesale volumes to grow moderately by 7–9% YoY. M&HCV trucks may grow 7–9%, LCV trucks 9–11% and buses around 8–10%.
Looking ahead to FY27, growth is expected to slow to 4–6% YoY, as demand normalises after the GST-led boost. Overall, the industry looks stable, but not super fast growing from here.

Also Read: Blue Energy Motors to Expand Its Electric Freight Corridor Network Beyond the Mumbai–Thane Route

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Frequently Asked Questions on Commercial Vehicles

1: What caused the 27% growth in CV sales in January 2026?

Ans: The growth was mainly due to the GST rate cut from 28% to 18% and increased freight activity.

2: Which segments performed best in January 2026?

Ans: M&HCV trucks saw 22.1% sequential growth, while LCVs, including mini trucks and pickups, grew 14.9% YoY.

3: Will the growth continue throughout FY26?

Ans: ICRA expects moderate growth of 7–9% YoY for CVs, with M&HCV growth possibly slowing as GST demand effect normalizes.

4: What is the outlook for FY27?

Ans: Domestic CV volumes are expected to grow 4–6% YoY, indicating a normalization in demand after the GST-led boost.

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