India's Commercial Vehicle industry likely to post 4-6% growth in FY27: ICRA
Ratings agency ICRA in its latest report has said that Indian commercial vehicle (CV) industry is projected to record a moderate 4-6 per cent year-on-year (YoY) growth in wholesale volumes in current financial year (FY27) with the broadened base of last fiscal likely to have some bearing on the growth momentum of this year.
The report stated that medium and heavy commercial vehicles (trucks) and light commercial vehicles (trucks) segments are expected to post a YoY volume growth of 1-3 per cent and 6-8 per cent, respectively, while the buses segment is likely to see a 7-9 per cent YoY growth over the fiscal.
Further, it stated that sustained infrastructure investments, stronger freight activity, and replacement demand are expected to drive volume growth, although rising fuel costs and financing challenges remain key headwinds.
Besides, it mentioned that in May this year, the Indian Commercial Vehicle wholesale volumes reported a healthy 13.5 per cent YoY growth while witnessing a sequential decline of 1.1 per cent. The domestic CV retail volumes reported a moderate 5.3 per cent YoY growth in May 2026, while recording a sequential decline of 18.3 per cent.
