Trends Driving the Future of Commercial Vehicles in India

India's commercial vehicles industry is at the threshold of a historic phase of recovery and revamp. Whether a bus, a truck or the newly budding arena of e-commercial vehicles, the industry awaits slow but steady growth in FY26.

Commercial Vehicles: Signs of Recovery

Wholesales of commercial vehicles are expected to bounce back by 2 to 5 percent in FY26 after a low for a period spanning two years, according to CareEdge Ratings. Medium and light commercial vehicles are expected to widen their sales growth by 2 to 4 percent and 4 to 6 percent, respectively.

Arti Roy, associate director, CareEdge Ratings, said, “The CV industry is expected to experience moderate growth, with overall sales volume likely to improve by around 2-5% y-o-y in FY26. The recovery will be driven by increased infrastructure activity, improved rural sentiment on the back of normal monsoon forecast, more attractive vehicle financing due to recent interest rate cuts, and ongoing fleet replacement—particularly in the bus segment—spurred by ageing vehicles, road tax concessions available for new vehicles under the scrappage policy for older vehicles and the transition to electric vehicles (EVs).”

CV Performance Across Segment

FY25 was not easy for the commercial vehicle market. Elections, weak freight demand, and high interest rates hit sales. Yet buses in the heavy commercial vehicle category stood out, registering a 21.6 percent growth. Demand for public transport and government-led fleet replacements boosted sales. On the other hand, heavy commercial trucks slipped 2.7 percent due to subdued freight movement and project delays.

That trend may reverse in FY26. With infrastructure activity picking up and financing costs easing, the trucks segment is set to recover. Combined with strong demand for buses, medium and heavy commercial vehicles are expected to post steady growth.

Automakers Introduce New CV Models

Manufacturers are keeping the market abuzz with fresh launches. In the small commercial vehicle segment, Tata Motors launched the ACE Pro, priced from Rs 3.99 lakh. Positioned as the most affordable four-wheel mini truck, it aims to support India’s small entrepreneurs. Girish Wagh, executive director, Tata Motors Commercial Vehicles, said, “Building on a two-decade legacy that has already supported over 2.5 million entrepreneurs, the new vehicle is designed with a focus on enhanced stability, safety, and profitability.”

Mahindra added to the momentum with the launch of the FURIO 8 in the light commercial vehicle category. With its mileage guarantee and Mahindra iMAXX telematics, it is designed for efficiency and low ownership costs. Meanwhile, Ashok Leyland is expanding aggressively in Northern India, announcing 50 new dealerships and service outlets to strengthen its reach.

Rise of Electric Commercial Vehicles

The electric commercial vehicle story is gathering speed. Businesses are increasingly exploring electric options for logistics, while more manufacturers are rolling out e-CVs. Start-ups and global investors are also pushing this trend forward.

The International Finance Corporation, part of the World Bank Group, has pledged $20 million in equity to Transvolt Mobility to expand its electric fleet in India. Vikram Kumar, IFC’s regional industry director for infrastructure and natural resources in Asia-Pacific, said, “Through a partnership with Transvolt, we plan to bolster competition in the EV market by promoting the electrification of public and private transport fleets.”

India’s clean mobility roadmap is ambitious. It includes electrifying 800,000 buses, converting 10 percent of diesel trucks, and deploying over 111,000 small commercial EVs. Electric light commercial vehicles, with their low emissions and cost advantages, are expected to lead this transition in logistics and last-mile connectivity.

Conclusion

The commercial vehicle market is clearly evolving. From small commercial vehicles empowering entrepreneurs to heavy commercial vehicles driving infrastructure, the sector is preparing for growth. At the same time, the rapid shift toward electric commercial vehicles points to a greener and more efficient future.

For more articles and news, stay updated with 91trucks. Subscribe to our YouTube channel and follow us on Facebook, Instagram, and Linkedin for the latest videos and updates from the automotive world!