Commercial vehicle makers move past pre-Covid peak

The sector had struggled to regain momentum after peaking in FY19, when demand was hit by the transition to stricter BS-VI emission norms, rising vehicle prices, the Covid-19 pandemic and a prolonged replacement cycle. FY26 marks the first year in which the recovery has become visible across major manufacturers and vehicle categories.

According to data from the Society of Indian Automobile Manufacturers (Siam), medium and heavy commercial vehicle (M&HCV) wholesales rose to 423,00 units in FY26, exceeding the previous peak of 391,000 units recorded in FY19. Truck sales stood at about 356,000 units, compared with 351,000 units seven years ago.

All-Time Highs

The recovery was reflected across manufacturers. Market leader Tata Motors sold 4,28,329 commercial vehicles in FY26, up 14% from the previous year and above its FY19 volume of 3,81,184 units. Ashok Leyland reported its highest-ever annual CV sales of 2,20,437 units, surpassing its previous peak of 1,97,366 units recorded in FY19.

VE Commercial Vehicles (VECV), the joint venture between Volvo Group and Eicher Motors, reported sales of 1,03,404 vehicles in FY26, up 14.7% year-on-year and significantly higher than the 69,827 units it sold in FY19. Mahindra sold 2,89,597 commercial vehicles during the year, compared with 2,48,601 units before the pandemic.

Future Growth Outlook

Industry executives and analysts attribute the revival to improving freight availability, replacement demand and sustained government spending on roads, mining and infrastructure projects. Better fleet utilisation and easier financing conditions have also encouraged transport operators to expand capacity after several years of deferred purchases.

The domestic market, which accounts for about 92% of industry volumes, continues to drive growth. Light commercial vehicles, representing nearly 60% of total sales, are benefiting from e-commerce and last-mile delivery demand, while M&HCV volumes are being supported by construction activity, mining operations and industrial freight movement.

According to Crisil Ratings, the industry’s momentum is expected to continue. After expanding 13% in FY26, CV volumes are projected to grow another 5-6% in FY27, taking industry sales to around 1.24 million units and establishing a new peak for the sector.

While geopolitical tensions in West Asia and fuel-price volatility remain risks, analysts expect infrastructure-led economic activity and replacement demand to support growth, indicating that the industry’s recovery is becoming more durable after several years of volatility.