Mahindra Projects Double-Digit Growth in India's Light Commercial Vehicle Market

Mahindra & Mahindra is confident that India's light commercial vehicle segment will rebound strongly this financial year, thereby closing with double-digit growth. According to the company, improving freight activity, tax relief and infrastructure expansion will be the main factors for the LCV market's recovery.

Market Performance and Growth Indicators

Sales for LCVs below 3.5 tons stood at 69,600 units in the second quarter of FY2026, against 61,700 units in the same quarter last year. Over the past two years, the quarterly volume for this category has seen a variation between 59,000 and 68,000 units, demonstrating recent signs of gradual improvement. According to Mahindra's internal assessment, the upward curve now points toward sustained growth in the segment.

Mahindra's market share further increased significantly in the sub-3.5-ton category-from 49.7% to 53.2%--cementing its position as a leading player in India's light commercial vehicle space. The company ascribes this performance to its well-diversified product range, strong rural reach and enhanced after-sales service. Models like the Mahindra Jeeto, Supro and Bolero Pik-Up continue to dominate their respective sub-segments by offering higher efficiency and reliability.

Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sectors), reaffirmed the optimism at Mahindra. He said “The first quarter did not quite play out that way. However, with the momentum we are seeing now, it will probably end up that way.”

Policy and Demand Drivers

The key factor leading to this recovery has been the Goods and Services Tax reduction on LCVs, which has brought down the total cost of ownership for the small business operator. Government spending on infrastructure, rural connectivity and modernization of logistics is adding further strength to the demand base.

The LCV segment remains critical for last-mile delivery and regional goods transport. With logistics networks increasing and small-scale industries looking at low-cost transportation, commercial vehicles demand will continue to be strong till FY2026.

Outlook for the Future 

Mahindra is anticipating the growth of the LCV industry on a steady path. Freight movement, access to financing and consumer activity are expected to remain supportive, the company said. The strong product line-up and increased market share should keep Mahindra ahead in the light commercial vehicles India category while driving continuous Mahindra LCV growth across the key regions.

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