Domestic commercial vehicle industry`s wholesale volumes likely to grow 3-5% in FY26: ICRA
Credit rating agency ICRA in its latest report has said that domestic commercial vehicle industry's wholesale volumes are expected to grow 3-5 per cent year-on-year in FY26. This follows a flat volume movement estimated in FY25, marred by the demand slowdown in the first half of the fiscal due to the general elections. Resumption of construction and infrastructure activities, steady rural demand along with higher replacement sales stemming out of ageing fleets and government mandates are the likely driving factors to propel the said volume expansion towards the end of FY2025 and through FY2026.
According to the report, the sustained push in infrastructure development, a steady increase in mining activities and the improvement in roads/highway connectivity are expected to support volumes going forward. The replacement demand would also remain healthy, primarily due to the ageing fleet, estimated at 10 years for the medium and heavy commercial vehicles (M&HCVs), and is expected to aid the industry volume expansion in the medium term.
The report said among the various sub-segments, the M&HCV (trucks) wholesale volumes are likely to grow by 0-3 per cent year-on-year in FY26 after seeing a flattish growth or marginal contraction in FY25. Wholesale volumes for the domestic light commercial vehicles (LCV trucks) are expected to see a modest 3-5 per cent YoY expansion in FY26, after registering a flattish growth or marginal contraction in FY25.
