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Festive boost fades for CVs; cycle now driven by replacement, infra push
The Business Guardian
|December 09, 2025
Demand for commercial vehicles in India is expected to remain in a gradual recovery phase through the second half of 2025-26, with growth being led by LCVs (light commercial vehicles), according to a report by India Ratings and Research (Ind-Ra).
Medium and Heavy Commercial Vehicles (MHCV) volumes are likely to stay subdued, contingent on infrastructure execution and freight stability.
In 2026-27, Ind-Ra expects the overall commercial vehicle industry to witness a modest uptick, supported by replacement demand and capex revival, though ageing fleets and delayed scrappage incentives could cap the upside.
According to the rating agency, the outlook remains “stable”, with “structural headwinds” likely to limit any sharp acceleration over the next six-to-nine months.
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