Indian CV Sales Jump to 27% in January to 99,544 Units on GST Cut
GST cut from 28% to 18% worked. CV wholesales jumped 27% in January. But ICRA says the boost won't last forever—FY27 growth seen at 4-6%.
Indian commercial vehicle wholesales grew 27% year-on-year in January 2026. Reaching 99,544 units. According to ratings agency ICRA, the growth was driven primarily by the GST rate cut from 28% to 18% implemented last September. Increased freight activity in the goods segment also contributed to the strong performance.
January Volumes Show Sequential Growth Too
The January numbers also reflected a 1.9% sequential growth over December 2025's 97,682 units. For the first 10 months of FY26, domestic CV wholesale volumes grew 11.3% year-on-year. Retail volumes during the same period rose 8.5%.
M&HCV Retail Volumes Jump 15.4% in January
The medium and heavy commercial vehicle segment recorded 15.4% year-on-year retail growth in January. Sequential increase was even stronger at 22.1%. For the first 10 months of FY26, M&HCV retail volume growth stood at 6.3%, showing improving momentum after the GST rate cut.
SCV Segment Sees 14.9% Retail Growth
Small commercial vehicle (SCV) retail volumes grew 14.9% year-on-year in January. The segment recorded a sharp sequential increase of 33%. ICRA noted that SCVs, being more cost-sensitive, witnessed a faster demand uptick compared to M&HCVs following the GST reduction. However, high funding costs remain a key challenge for this segment.
ICRA Projects Moderate FY26 Growth Ahead
ICRA expects domestic CV industry wholesale volumes to register moderate 7-9% growth for full FY26. Within segments, M&HCV trucks are projected to grow 7-9%, SCV trucks 9-11%, and the buses segment 8-10% during the fiscal year. For FY27, domestic wholesale volumes are expected to moderate further with 4-6% growth as demand normalizes after the GST-led boost.
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