26 - 06 - 2026

Indian commercial vehicle wholesale volumes grow 13.5 per cent in May

The Indian commercial vehicle (CV) wholesale volumes reported a 13.5 per cent year-on-year (YoY) growth in May 2026, even though it recorded a 1.1 per cent decline from the previous month.

The domestic CV industry is expected to register a YoY growth of 4-6 per cent in wholesale volumes in FY27. While M&HCV (trucks) and LCV (trucks) segments are expected to witness a YoY volume growth of 1-3 per cent and 6-8 per cent, respectively, the buses segment is likely to see a 7-9 per cent YoY growth over the fiscal.

The broadened base of FY26 is likely to have some bearing on the growth momentum in FY27, according to an ICRA report.

In the first two months of FY27, the CV wholesale volumes grew by 15 per cent on a YoY basis. The domestic CV retail volumes reported a 5.3 per cent YoY growth in May 2026, while recording a sequential decline of 18.3 per cent.

In terms of geographical spread, CV retail volumes showed higher YoY growth in rural markets vis-à-vis urban counterparts, pointing to demand broadening for goods movement beyond metro regions. Wholesale volumes stayed resilient, with a sequential easing in May.

Retail volumes in the medium and heavy commercial vehicle (M&HCV) segment witnessed a growth of 1.9 per cent on a YoY basis in May 2026 and a sequential decline of 25 per cent. While the goods & services tax (GST) rate cuts with effect from September 22, 2025, coupled with infrastructure-led freight movement and school-bus replacement demand have supported the volume offtake in recent months, the fuel price hikes undertaken through May 2026 impacted the growth. The M&HCV segment reported a 10.1 per cent YoY growth in retail volumes in FY26, it said.

Retail volumes in the light commercial vehicle (LCV) segment in May 2026 grew by 7.7 per cent on a YoY basis, with a sequential decline of 13.3 per cent. Demand momentum for the LCV segment has also been impacted by the GST rate cuts, supported by improved last-mile freight movement. Elongated financing turnaround time, however, remains one of the challenges for this segment. The LCV segment reported a 12.4 per cent YoY growth in retail volumes in FY26, it added.