India’s commercial vehicle industry clocks robust sales in January, to grow 7–9% in FY26
- IBEF
- February 25, 2026
The commercial vehicle (CV) sector in India has recorded a robust sales trend in January, marking a positive start to the year, as per a report by ICRA. According to the report, the sector is expected to grow by 7–9% in FY26, driven by improving economic activity, increased infrastructure spending, and a stable demand from the core sectors of construction, mining, and logistics. The robust sales in January have been driven by healthy replacement demand, continued traction in infrastructure projects, and steady freight availability.
The report further emphasised that demand for medium and heavy commercial vehicles (M&HCVs) is likely to remain strong, driven by government-led capital expenditure and growth in infrastructure and industrial segments. Light commercial vehicles (LCVs) are also witnessing a gradual recovery, supported by the expansion of e-commerce and last-mile delivery demand. In addition, favourable financing conditions, stable fuel prices, and improving fleet utilisation levels are supporting overall industry growth. The report also highlighted that replacement demand is expected to remain a key growth driver, particularly due to the ageing vehicle fleet and regulatory changes. Expansion in the construction sector, increased activity in road and highway projects, and rising industrial production are also likely to boost freight movement, thereby driving demand for commercial vehicles. Despite global uncertainties, the Indian CV industry is expected to remain resilient, with strong fundamentals supporting steady growth in the coming years.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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