Tata Motors Races Ahead in September CV Sales as GST 2.0 Boosts Market Shift

India’s commercial vehicle (CV) market displayed contrasting fortunes in September 2025, as the rollout of GST 2.0 and the onset of the festive season reshaped buying behaviour. While Tata Motors surged ahead with double-digit growth, Mahindra’s light commercial vehicles (LCVs) outperformed expectations, and VE Commercial Vehicles (VECV) relied on exports to offset flat domestic demand.

Tata’s Strongest Month of FY26

Tata Motors dominated the CV landscape, selling 35,862 units in September, a 19% jump year-on-year. Its small commercial vehicle and pickup segment drove the momentum, soaring 30% YoY to 14,110 units, aided by fresh launches like the Ace Pro and Ace Gold+.
“September has been our strongest month of FY26,” said Girish Wagh, Executive Director, Tata Motors, attributing the performance to aggressive market activations and the immediate benefits of GST reforms.

Mahindra Gains in LCVs, Heavy CVs Struggle

Mahindra & Mahindra delivered 26,728 units, recording 18% overall growth. The 2-3.5 tonne LCV category was the star performer, expanding 21% to 23,342 units, while the sub-2T segment slipped marginally.
Despite the upbeat LCV story, Mahindra’s heavy CV business, including the trucks and buses division and SML Isuzu, continued to drag. Combined sales dropped 8% YoY to 1,904 units, reflecting cautious fleet operators delaying purchases ahead of GST 2.0 implementation.

VECV Holds Steady with Export Push

VE Commercial Vehicles, the Volvo-Eicher joint venture, reported 7,619 units sold in September, nearly unchanged from last year. Domestic sales dipped nearly 3%, but robust overseas demand provided relief, with exports jumping 47% YoY. Heavy-duty exports were particularly strong, rising more than 270% compared to September 2024.

Outlook: Festive Season to Lift Momentum

Industry leaders remain optimistic for the second half of FY26, pointing to rising bookings after GST rate cuts, festive demand, and expanding infrastructure activity. With construction, mining, and logistics projects gaining traction, analysts expect momentum to pick up despite September’s uneven results across manufacturers.