India’s Small Commercial Vehicle Market Rebounds Strongly

India’s small commercial vehicle (SCV) segment has rebounded sharply after nearly two years of muted growth, reflecting a resurgence in last-mile transportation demand. According to Society of Indian Automobile Manufacturers (SIAM) data reported by Times of India, SCVs now account for around 85 per cent of the light commercial vehicle (LCV) market, underscoring their critical role in India’s logistics and delivery ecosystem.

For the first nine months of FY26, SCV sales rose 7 per cent year-on-year, reaching 369,793 units, up from 345,194 units in the corresponding period last year. The pick-up category drove much of this growth, posting a 10 per cent increase to 252,222 units, while mini-trucks saw a modest rise to 117,571 units from 116,326 units.

Industry observers attribute the rebound to several factors, including festive season demand, rural consumption, and the ongoing boom in construction and infrastructure projects. Poonam Upadhyay, Director at Crisil Ratings, highlighted that policy support also played a key role: “The reduction in GST on commercial vehicles from 28 per cent to 18 per cent, coupled with lower interest rates, has boosted purchase sentiment, particularly for higher-payload pick-ups,” she said.

Electrification is also gaining traction in the SCV space. A growing number of new entrants and incumbent manufacturers have begun offering electric small trucks, catering to urban deliveries and last-mile logistics, and signaling a shift toward more sustainable transport solutions.

In terms of market share, Mahindra dominates the pick-up segment with 60 per cent, followed by Ashok Leyland at 20 per cent, and Tata Motors at 18 per cent. In the mini-truck segment, Tata Motors continues to lead with a 52 per cent share, building on the legacy of the Ace, India’s first low-tonnage goods vehicle launched in 2005. Maruti Suzuki follows with 24 per cent through its Super Carry, while Mahindra holds 23 per cent.

Historical data indicates a long-term trend toward higher-capacity pick-ups. In FY19, total SCV sales stood at 515,000 units, split between 2.35 lakh mini-trucks and 2.8 lakh pick-ups. Over the years, operators have increasingly preferred pick-ups with payloads exceeding one tonne, moving away from smaller sub-one-tonne mini-trucks, driven by higher efficiency and better earnings potential.

As infrastructure development accelerates and logistics networks modernize, the SCV segment is poised for sustained growth, supported by stronger rural demand, urban delivery needs, and emerging electric mobility solutions. With market leaders consolidating share and new players entering, India’s small commercial vehicle market is set to remain a backbone of the country’s last-mile transportation ecosystem.