Indian Commercial Vehicle Wholesale Volumes Jump 27 Percent In January 

India’s commercial vehicle (CV) industry reported robust growth in January 2026, with wholesale volumes rising 27 per cent year-on-year (YoY) to 99,544 units, according to a report by ICRA. This marks a sequential increase of 1.9 per cent over December 2025’s 97,682 units. Analysts attribute the surge to the reduction of Goods and Services Tax (GST) from 28 per cent to 18 per cent from September 22, 2025, along with increased freight activity across the goods transport sector.

Retail Growth In Medium And Heavy Commercial Vehicles

Retail sales of medium and heavy commercial vehicles (M&HCV) also recorded strong momentum. January saw a 15.4 per cent YoY increase in M&HCV retail volumes, with sequential growth of 22.1 per cent over December. Over the first ten months of FY26, retail volumes in this segment grew by 6.3 per cent, reflecting steady improvement following the GST rate cuts.

Light Commercial Vehicle Segment Sees Uptick

The light commercial vehicle (LCV) segment similarly experienced growth, with retail volumes rising 14.9 per cent YoY in January. During the ten months of FY26, LCV retail volumes increased by 11.1 per cent, driven by higher demand for last-mile delivery vehicles and cost advantages from lower GST.

Outlook For FY26 And FY27

Overall, domestic CV wholesale volumes grew 11.3 per cent YoY in the first ten months of FY26, while retail volumes rose 8.5 per cent. The industry expects moderate growth for the fiscal year, projecting 7–9 per cent YoY growth in wholesale volumes. M&HCV and LCV segments are expected to grow 7–9 per cent and 9–11 per cent, respectively, while the bus segment is likely to see 8–10 per cent growth.

The combined impact of GST benefits, increasing freight activity, and demand for commercial vehicles is reinforcing the sector’s positive momentum as India’s logistics and transportation ecosystem continues to expand.