Indian CV Makers Expect FY26 To End On A Positive Note Amid Strong Demand

By Amit Jangra | Published Date : December 26, 2025

Medium and heavy truck demand is improving and the segment is expected to see better growth in the second half of the financial year.

Indian commercial vehicle makers are feeling confident about the second half of FY26 as demand conditions continue to improve across segments. After a slow phase of almost two years, the CV industry has shown a clear comeback in the first half of the financial year. With better vehicle utilisation, improved consumption and higher activity in infrastructure projects, the industry expects the positive trend to continue till the end of FY26.

Industry experts believe that all major commercial vehicle segments, including light, medium and heavy trucks, will close the year on a healthy note. The medium and heavy truck segment is expected to grow better in the second half. Demand is improving and this is helping the market move ahead.

Tata Motors Sees Strong Momentum In M&HCV Segment

Table of Contents

1. Tata Motors Sees Strong Momentum In M&HCV Segment

2. Ashok Leyland And ZF Expect Better-Than-Expected Growth

3. Final Thought

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Tata Motors believes that the CV industry will remain strong in the coming months. Girish Wagh said that demand is improving across segments in the second half of FY26. He also pointed out that the GST cut has helped customers spend more and vehicles are being used better, which is helping truck sales.

He also added that mining, construction and infrastructure activities have picked up pace, leading to higher demand for tippers. On the other hand, demand for LCVs has also improved due to lower effective prices for B2C customers. Tata trucks are expected to benefit from this trend, with high single-digit growth forecast for the M&HCV segment in the second half.

Ashok Leyland And ZF Expect Better-Than-Expected Growth

Ashok Leyland has also reported encouraging signs from the market. Shenu Agarwal, MD & CEO of Ashok Leyland, said that total CV volumes stood at 4.63 lakh units in the first half, showing a 4 percent year-on-year growth. Demand improved further in October, with the M&HCV segment growing around 7 percent, while the LCV segment expanded nearly 15 percent.

ZF CVCS India expects the light commercial vehicle market to improve in FY26. Paramjit Singh Chadha said the GST cut has helped lower vehicle cost and EMIs. Due to this, fleet owners are showing more interest in new trucks rather than old used vehicles. Growing consumption is also helping the market.

Final Thought

Overall, the Indian commercial vehicle industry is clearly on a recovery path. Strong demand for trucks, better infrastructure activity, GST benefits and rising logistics movement are driving growth. With solid performance in October and positive expectations for November and December, CV makers are hopeful that FY26 will end on a strong and positive note.

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Frequently Asked Questions on Commercial Vehicles

1. Why is the M&HCV segment expected to grow in the second half?

Ans: Demand has improved due to better consumption, higher infrastructure activity and increased vehicle usage across industries.

2. How has the GST cut helped the commercial vehicle market?

Ans: The GST cut reduced vehicle prices and EMIs, making trucks more affordable for buyers and fleet operators.

3. Which segments are seeing better demand in FY26?

Ans: Medium and heavy trucks are seeing strong demand, while light commercial vehicles are also gaining traction.

4. Will this positive trend continue till the end of FY26?

Ans: Yes, industry players believe the demand momentum will continue, helping the CV market close FY26 on a positive note.

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