India’s Truck and Bus Sales to Cross 10 Lakh After 7 Years

India’s commercial vehicle industry — long considered a barometer of economic health — is roaring back to life. After a lukewarm few years and a modest dip in the last fiscal, truck and bus sales are now on course to hit the 10 lakh (1 million) mark, a level not seen since 2018–19. The shift is no accident. It’s the result of powerful economic undercurrents, decisive policy moves, and the ever-expanding appetite of Indian logistics and transport.

The Numbers Behind the Noise

In FY 2024–25, the industry recorded sales of roughly 9.57 lakh commercial vehicles. Not bad, but not historic either. That’s about to change. Projections for FY 2025–26 hint at a 3–5% growth, nudging overall sales past the symbolic 1 million-unit threshold. For an industry that was once sputtering in the aftermath of economic slowdowns, regulatory disruptions, and COVID-era woes — this is a serious comeback.

Steel, Concrete, and the Government’s Wallet

At the heart of this revival is infrastructure. The central government’s capital expenditure is set to rise by 10–11%, pumping crores into highways, bridges, freight corridors, and ports. As bulldozers roll and cement mixers churn, demand for medium and heavy commercial trucks (M&HCVs) climbs. These muscular machines — which account for nearly 38% of all CV sales — are the backbone of construction logistics.

The Quiet Power of Small Towns

Meanwhile, a less visible but equally potent force is reshaping the industry: e-commerce expansion into Tier 2 and Tier 3 towns. With warehouses sprouting on the outskirts of Patna, Indore, and Guwahati, the demand for light commercial vehicles (LCVs) — like delivery vans and compact trucks — is soaring.

These LCVs, which already make up 62% of the market, are projected to grow by 4–6% this fiscal. They’re the lifeline of doorstep deliveries, bridging the gap between massive logistics hubs and the front doors of India’s rising consumer base.

Buses Go Electric — and Get a Push

Enter the PM-eBus Sewa Yojana. This flagship scheme is not just a vision; it’s becoming reality. Today, there are 3,200 electric buses operating in India — a number set to grow quickly, thanks to generous subsidies of INR 35–55 lakh per bus under programs like FAME II.

The result? Transport corporations and private operators alike are seeing electric buses not as risky experiments, but as viable long-term investments. With rising fuel costs and environmental scrutiny, this green transition is no longer optional — it’s inevitable.

Trucks are Getting Cooler — Literally

From October 1, 2025, all newly manufactured trucks in India will be required to feature air-conditioned cabins. It's a regulatory leap aimed at improving driver comfort and safety. But it’s not without its cost — an estimated 30,000–40,000 INR per vehicle, especially in the M&HCV segment.

Manufacturers are already adjusting, hiking prices by 2–3% to account for the new norms. That’s on top of previous hikes linked to emission standards and safety mandates.

4,500 Crore INR Bet on the Future

Major CV makers are pouring 4,500 crore rupees into capital expenditure this year — a sharp 12–15% jump. This isn’t just about complying with rules. It’s about reimagining commercial vehicles: smarter engines, cleaner emissions, electric variants, and safer designs.

With better margins — holding steady at 11–12% despite rising costs — and low debt levels, many manufacturers are playing the long game.

What Does This Mean for Buyers?

Whether you're a fleet operator or a first-time transporter, the implications are clear:

• Commercial truck prices may rise, but new models offer improved safety, comfort, and fuel efficiency.
  
• Bus prices — especially electric ones — will remain high initially, but with government support, ownership costs are falling fast.
  
• And with rising demand, after-sales support, financing options, and vehicle availability are all improving across the board.
  

The Road Ahead

A million commercial vehicles sold isn’t just a statistic. It’s a signal — that India's roads are humming with energy, that its economy is picking up pace, and that its industries, from steel to retail, are moving goods and people faster than ever before. From bustling metros to sleepy towns, from cargo haulers to city shuttles — the great Indian commercial vehicle story is shifting gears. And this time, it’s racing ahead.

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