In terms of retail sales, there was a moderate 5.3 per cent y-o-y growth in during the month | Photo Credit: SUSHIL KUMAR VERMA

The domestic commercial vehicles (CVs) industry is expected to register a moderate year-on-year (y-o-y) growth of 4-6 per cent in wholesale volumes in FY27 with the broadened base of last fiscal likely to have some bearing on the growth momentum of this year, ICRA said in a report on Friday.

According to the report, while medium and heavy commercial vehicles (trucks) and light commercial vehicles (trucks) segments are expected to witness a y-o-y volume growth of 1-3 per cent and 6-8 per cent, respectively, the buses segment is likely to see 7-9 per cent y-o-y growth over the fiscal.

“ICRA expects the domestic CV industry to register a moderate y-o-y growth of 4-6 per cent in wholesale (dispatches to dealers) volumes in FY27,” it said adding that the broadened base of FY26 is likely to have some bearing on the growth momentum in FY27.

The report noted that continued infrastructure spending, improved freight movement and replacement demand are expected to support volumes, although rising fuel costs and financing challenges remain key headwinds.

In May this year, the Indian CV wholesale volumes reported a healthy 13.5 per cent y-o-y growth while witnessing a sequential decline of 1.1 per cent, ICRA said.

In terms of retail sales, there was a moderate 5.3 per cent y-o-y growth in during the month, while recording a sequential decline of 18.3 per cent.

In terms of geographical spread, CV retail volumes showed higher y-o-y growth in rural markets vis-a-vis urban counterparts, hinting at demand broadening for goods movement beyond metro regions, it added.

GST rate cuts

In an earlier report in March, ICRA had said that the CV segment has led the upcycle, aided by GST rate cuts, higher freight movement and infrastructure activity. Within segments, medium and heavy commercial vehicles (M&HCV) recorded particularly strong growth while light commercial vehicles (LCVs) continued to benefit from improved last-mile freight activity and higher sensitivity to GST-led cost reductions, it had said.

Recently, Society of Indian Automobile Manufacturers (SIAM) also shared that in FY25-26, 10.80 lakh CVs were sold in the country. Western Zone led the CV sales with 3.98 lakh units. Maharashtra recorded highest CV sales with 1.61 lakh units in the country during the year, followed by Gujarat, Tamil Nadu, Uttar Pradesh, and Karnataka.

Published on June 26, 2026