Commercial vehicles across categories posted a 10 per cent growth in domestic sales at 7.5 lakh units in the nine months ended December 31, 2025, compared with 6.8 lakh in the corresponding period last year. All 17 manufacturers in the segment reported positive growth in the first nine months of the fiscal year, according to Society of Indian Automobile Manufacturers (SIAM) data.
Tata leads
Exports were up by 19 per cent in the first nine months of this fiscal at 68,140 units (57,132 units). In addition to the festival demand in Q3, the rollout of GST 2.0 reform has also provided a significant boost to consumer sentiment and an increase in overall consumption levels, leading to increased freight activity in the economy. This has further enhanced the freight carrying intra-city logistics requirements, which is translating into higher demand, said SIAM.
Tata Motors continued to lead the segment, with Mahindra & Mahindra and Ashok Leyland at the second and third spots, respectively. VECV-Eicher and Force Motors were in fourth and fifth places, according to SIAM data. The market share was almost flat for all of them.
MD & CEO of Tata Motors Ltd, in the monthly sales data recently, said the sales momentum ignited by GST 2.0 and the festival surge in Q2FY26 continued into Q3FY26, driving growth and lifting overall sentiment of the commercial vehicles industry.
President & Chief Business Officer of Domestic Sales and Customer Service, Daimler India Commercial Vehicles, said the growth has been underpinned by improved macroeconomic fundamentals, GST reforms and enhanced customer confidence, which have collectively driven fleet renewal and expanded logistics activity.
Director of Crisil Ratings, said domestic CV wholesale demand mirrors the trend seen in the comparable period last year, but with a distinctly different intra-year mix.
“The growth was clearly back-ended, driven by a sharp acceleration in Q3 of the current fiscal year at 22 per cent, versus a muted 4 per cent expansion in H1,” she said. The Q3 surge reflects the release of deferred demand, improved freight availability post-monsoon, higher fleet utilisation, replacement-led buying and a visible pick-up in infrastructure and construction execution.
A key structural catalyst has been the GST rate rationalisation to 18 per cent from 28 per cent, which significantly lowered acquisition costs, improved return economics for fleet operators and accelerated purchase decisions.
Additionally, a gradually easing interest rate environment helped improve affordability and financing sentiment at the margin, supporting an incremental demand in revival. Notably, both MHCV and LCV segments participated in the upcycle, indicating a broad-based demand recovery, rather than a single-segment spike. The MHCV strength suggests sustained long-haul freight, mining and infrastructure-led movement, while LCV growth reflects resilience in last-mile, e-commerce and urban logistics, she said.
