Revving up Again: Modest Growth for India's Commercial Vehicle Industry

India's domestic commercial vehicle industry is poised for a 3-5% growth in wholesale volumes this fiscal. Driven by infrastructure activity and steady economics, growth follows a previous 1.2% dip. Light and medium-heavy segments will see modest gains, while buses are set to flourish with up to 10% growth.

India's domestic commercial vehicle (CV) industry is projected to achieve a modest growth of 3-5% in wholesale volumes this fiscal year, following a minor decline of 1.2% in FY25, according to a report by Icra released on Monday.

The report attributes this anticipated growth to the resurgence of construction and infrastructure activities alongside a stable economic climate. CV wholesale volumes increased marginally by 0.1% year-on-year last month, and by 1.6% sequentially. Yet, the April-May period of the current financial year saw a slight dip of 0.7% year-on-year.

In contrast, CV retail volumes registered a decline of 3.7% year-on-year in May 2025, with sequential decreases at 11.3%, indicative of high inventories at dealerships. The report foresees specific growth trends in different segments, with buses expected to rise significantly by 8-10%, compared to modest increases in medium-heavy and light segments.