India Commercial Vehicle Sales Surge 27% in January; GST Cut and Freight Activity Drive Growth

India’s commercial vehicle sector began the calendar year on a strong footing, with wholesale volumes recording a sharp year on year expansion in January, reflecting the impact of GST rationalisation and improving freight demand.

January CV Wholesale Volumes Jump 27% YoY​

Indian commercial vehicle wholesale volumes rose 27 per cent year on year to 99,544 units in January, compared with 97,682 units in December 2025, marking a sequential growth of 1.9 per cent.

The strong annual growth was primarily attributed to the reduction in the Goods and Services Tax rate from 28 per cent to 18 per cent, effective September 22, 2025. The rate cut, coupled with higher freight activity in the goods segment, provided a meaningful boost to dispatches during the month.

M&HCV Segment Shows Strong Retail Momentum​

Retail volumes in the medium and heavy commercial vehicle segment registered a 15.4 per cent year on year increase in January. On a sequential basis, the segment posted a robust 22.1 per cent growth.

For the first 10 months of FY26, retail volume growth in the M&HCV segment stood at 6.3 per cent, indicating a steady improvement in demand momentum following the GST rate revision.

LCV Retail Volumes Maintain Healthy Growth​

The light commercial vehicle segment also recorded solid traction. Retail volumes grew 14.9 per cent year on year in January.

During the 10 month period of FY26, LCV retail volumes expanded 11.1 per cent year on year, reflecting sustained demand across the segment.

10M FY26 Performance Reflects Broad-Based Expansion​

On a cumulative basis, domestic commercial vehicle wholesale volumes increased 11.3 per cent year on year during the first 10 months of FY26. Retail volumes during the same period grew 8.5 per cent, underlining consistent demand recovery across categories.

FY26 and FY27 Outlook: Moderate Growth Expected​

The domestic commercial vehicle industry is projected to register a moderate year on year growth of 7 to 9 per cent in wholesale volumes in FY26.

Looking ahead to FY27, wholesale volumes are expected to grow at a relatively moderate pace of 4 to 6 per cent year on year.

Segment-wise, M&HCV trucks and LCV trucks are expected to record volume growth of 7 to 9 per cent and 9 to 11 per cent respectively during the fiscal.

The buses segment is also likely to see steady traction, with an anticipated year on year growth of 8 to 10 per cent during the fiscal.

The overall performance highlights strengthening demand conditions in the domestic commercial vehicle market, supported by policy measures and improving freight activity.