New Delhi: Rating company ICRA said on Monday that wholesale batches in the domestic commercial vehicle industry are expected to grow by 3-5% year-on-year in fiscal 26. It said in a statement that this was after the unified movement estimated in fiscal 25, which hurt the demand as a result of a slowdown in the first half of the election.
“Resuming construction and infrastructure activities, stable rural demand and higher alternative sales are caused by aging fleets and government mandates, which may be the driving factor driving the expansion of the above volumes at the end of fiscal 2025 and at the end of fiscal 2026.”
She added that the continued driving force of infrastructure development, steady growth in mining activity and improved road/highway connections are expected to support future volumes.
Shah said alternative demand will also remain healthy, mainly due to the aging fleet, with an estimated 10-year medium and heavy commercial vehicles (M&HCVS) expected to contribute to the expansion of the industry volume in the medium term.
In various sub-segments, M&HCV (truck) wholesale volumes increased by 0-3% year-on-year in FY26 after frank growth or marginal contraction in FY25.
It added that the wholesale volume of domestic light commercial vehicles (LCV trucks) is expected to decline by 3-5% in FY25 after growth or marginal contraction.
