FADA Reports 15% YoY Growth in Indian Commercial Vehicle Sales in January 2026 

The Federation of Automobile Dealers Associations (FADA) has released retail sales data for January 2026, showing a robust 15.07% year-on-year (YoY) growth in the Indian commercial vehicle (CV) market. Retail sales rose from 93,410 units in January 2025 to 1,07,486 units this year, reflecting increased demand across multiple vehicle categories.

Heavy commercial vehicles (HCVs) recorded a 14.61% YoY growth, with 34,287 units sold compared to 29,915 units last year. Light commercial vehicles (LCVs) saw sales increase by 14.94% YoY to 65,505 units, marking a significant 33% month-on-month (MoM) rise. Medium commercial vehicles (MCVs) also outperformed, with 7,648 units sold in January 2026, up 18.87% from 6,434 units a year earlier, despite a 19.29% MoM decline.

Fuel-Wise Market Share Trends

Diesel continues to dominate the commercial vehicle market, accounting for 81.97% of retail sales in January 2026, up slightly from 81.77% in January 2025. CNG/LPG-powered vehicles maintained a stable share of 12.51%, with a minor increase from 12.47% last year. Petrol and ethanol vehicles held a 3.58% market share, while electric CVs rose to 1.92% from 1.02% in the previous year, reflecting growing adoption of eco-friendly powertrains. Hybrid vehicles accounted for a marginal 0.03% share.

Retail Strength Index Shows Balanced Urban-Rural Demand

The all-India CV retail strength index, based on urban and rural RTO data, recorded 13.94% YoY growth in urban areas and 16.25% in rural regions. Month-on-month, urban retail grew 30.45% while rural markets expanded 26.50%. January 2026 sales were nearly evenly split, with urban areas contributing 50.7% and rural regions 49.3% of total retail sales.

FADA Insights on Market Performance

C.S. Vigneshwar, President of FADA, highlighted the improving freight sentiment and replacement-led buying as key drivers of growth. He noted, “The CV segment clocked 1,07,486 units (+15.07% YoY), with strong performance across tonnage bands. Both urban and rural markets participated, underscoring that logistics-led demand is not restricted to metro regions alone.”

Positive Outlook for February and Q1 2026

Dealer sentiment for February remains upbeat, with 72.56% anticipating growth and only 4.51% expecting a slowdown. Factors supporting optimism include a growth-oriented budget with infrastructure and agriculture focus, stable RBI rates, festival-driven freight demand, and increased financing comfort.

Looking ahead to the next three months, 79.70% of dealers expect continued growth, while just 1.88% foresee de-growth. Infrastructure projects, freight activity, and replacement demand are expected to drive sustained CV sales, especially in construction and logistics applications. Minor challenges such as election-related disruptions and seasonal factors are noted, but overall market sentiment remains positive for the remainder of Q1 2026.