Indian Commercial Vehicle Sales Hit Record High Q3

India’s commercial vehicle (CV) industry delivered a historic performance in the third quarter of FY26, recording its highest-ever Q3 sales at 2.90 lakh units. The milestone marks a strong 21.5 percent year-on-year growth compared to Q3 FY25, underlining robust demand across logistics, transportation, and freight-linked sectors.

The strong quarterly outcome was supported by higher freight movement, festive-season consumption, and improved customer sentiment following the rollout of the GST 2.0 reform. Traditionally, the third quarter benefits from festive demand, and FY26 followed the same trend, with increased consumption translating into higher movement of goods across the country.

Industry data shows that the commercial vehicle segment continued to gain momentum despite seasonal slowdowns, driven by structural growth factors. Rising industrial output, accelerated infrastructure development, and increasing formalisation of the logistics ecosystem have collectively strengthened demand for commercial vehicles across categories.

The implementation of GST 2.0 has played a pivotal role in boosting the sector’s performance. The reform has streamlined taxation and improved freight efficiency, leading to a surge in transportation activity. As businesses expanded logistics capacity to meet growing demand, fleet additions increased, particularly in light and medium commercial vehicles. The reform has also accelerated intra-city and last-mile logistics demand, supported by the rapid growth of organised retail, e-commerce, and fast commerce across urban and peri-urban regions.

Alongside domestic growth, Indian commercial vehicle exports also posted healthy gains. During Q3 FY26, exports rose 13.6 percent year-on-year to 0.25 lakh units. For the full January–December 2025 calendar year, exports reached 0.92 lakh units, reflecting a strong 27.1 percent increase over the previous year. The Middle East and neighbouring markets remained key export destinations, attracted by the competitive pricing, durability, and adaptability of Indian-made commercial vehicles.

On an annual basis, the Indian commercial vehicle industry achieved another record in calendar year 2025, with total sales reaching 10.28 lakh units. This represented a 7.7 percent year-on-year growth over 2024 and marked the highest-ever annual sales volume for the segment. The performance highlights the sector’s resilience and its critical role in supporting India’s broader economic activity, industrial output, and goods transportation network.

Commercial vehicles remain the backbone of India’s supply chain, enabling the movement of raw materials, finished goods, and consumer products across long distances. The sustained rise in sales reflects expanding economic activity and strengthening demand fundamentals.

Looking ahead, industry stakeholders expect FY26 to close on a positive growth trajectory, supported by policy-led tailwinds and structural reforms. However, caution remains around geopolitical developments that could impact global supply chains and export markets. Despite these uncertainties, calendar year 2025 stands out as a landmark period for the Indian commercial vehicle industry, reinforcing confidence in its long-term growth outlook.