Wholesale sales of commercial vehicles in India soared to 99,544 units in January, a stellar 27% increase from the previous year and 1.9% higher than December’s figures. This momentum highlights the sector’s strong rebound.
The catalyst? A pivotal GST reduction to 18% from 28% starting late September 2025, coupled with rising freight volumes that have boosted fleet replacements and new purchases.
Retail sales in the M&HCV category shone brightly, climbing 15.4% annually and 22.1% sequentially in January. Cumulative growth for FY2026’s first 10 months stands at 6.3%, a clear win from the tax cut’s ripple effects.
LCVs mirrored this vigor, with January retail up 14.9% year-on-year, and 11.1% growth over 10 months. Domestic wholesale and retail sales for CVs rose 11.3% and 8.5% respectively in this period.
Projections for FY2026 paint an optimistic picture: 7-9% wholesale growth overall, with M&HCV at 7-9%, LCV trucks at 9-11%, and buses at 8-10%. FY2027 could see a steadier 4-6% rise.
As infrastructure projects accelerate and e-commerce thrives, the CV industry is poised for steady expansion, cementing its role as a barometer of India’s economic health.