India’s Small Commercial Vehicle Market Sees Revival

India’s small commercial vehicle (SCV) segment, a critical pillar of last-mile transportation, has staged a notable recovery after nearly two years of subdued demand. Supported by improving economic activity, festive-led consumption, and policy tailwinds, the segment has returned to growth, signalling renewed momentum in the light commercial vehicle market.

SCVs—comprising mini-trucks with gross vehicle weight (GVW) of up to 2 tonnes and pick-ups in the 2–3.5 tonne GVW range—account for nearly 85 per cent of India’s light commercial vehicle volumes. For the first nine months of FY26, the segment recorded sales of 369,793 units, marking a 7 per cent increase over the 345,194 units sold during the same period last year, according to data from the Society of Indian Automobile Manufacturers (SIAM).

Growth has been led primarily by the pick-up truck category, which continues to gain structural importance within the segment. Pick-up volumes rose 10 per cent year-on-year to 252,222 units, compared with 228,868 units in the corresponding period of FY25. In contrast, the mini-truck segment remained largely stable, posting a marginal increase to 117,571 units from 116,326 units a year earlier.

Industry analysts attribute the rebound to a sharp improvement in demand during the October–December quarter, when festive buying, stronger rural sentiment, and rising construction and infrastructure activity boosted fleet utilisation. Improvements in last-mile logistics and freight movement also played a key role in lifting replacement demand.

According to Poonam Upadhyay, Director at Crisil Ratings, recent policy measures have further strengthened purchase sentiment. The reduction in GST on commercial vehicles from 28 per cent to 18 per cent, combined with lower interest rates, has made vehicle ownership more attractive—particularly for higher-payload pick-ups that offer better earnings potential for operators.

Electrification is emerging as another growth driver in the SCV space. Both established manufacturers and new entrants are expanding their electric small truck portfolios, reflecting rising interest in lower operating costs and cleaner mobility solutions for urban and semi-urban delivery applications.

Market leadership remains concentrated among a few major players. In the pick-up segment, Mahindra continues to dominate with a 60 per cent market share, followed by Ashok Leyland at 20 per cent and Tata Motors at 18 per cent. In the mini-truck category, Tata Motors retains its leadership position with a 52 per cent share, building on the legacy of the Ace platform. Maruti Suzuki ranks second with a 24 per cent share through the Super Carry, while Mahindra holds a 23 per cent share.

Longer-term trends indicate a structural shift within the SCV market. In FY19, total SCV sales stood at 515,000 units, split between 235,000 mini-trucks and 280,000 pick-ups. Since then, demand has steadily moved toward higher-payload pick-ups exceeding one tonne, as operators prioritise better load capacity, efficiency, and profitability over smaller sub-one-tonne vehicles.

With improving macroeconomic conditions and evolving logistics needs, the SCV segment appears poised for sustained growth in the coming quarters.