Commercial vehicle volumes likely to grow by 3-5% this fiscal: Report

New Delhi: Commercial vehicle dispatches from companies to dealers are expected to witness a volume growth of 3-5 per cent year-on-year in the current fiscal, rating agency Icra said on Wednesday.

Domestic commercial vehicle wholesale volumes reported a moderate 6.1 per cent year-on-year increase in July 2025, even as volumes declined sequentially by 2.7 per cent.

"ICRA expects the domestic CV industry to post a modest year-on-year growth of 3-5 per cent in wholesale volumes in FY2026, following a marginal 1.2 per cent decline recorded in FY2025," the rating agency said in a report.

Within this, medium and heavy commercial vehicle (M&HCV) trucks and light commercial vehicle (LCV) trucks are expected to see modest growth in the range of 0-3 per cent and 3-5 per cent, respectively, during the year, it added.

The buses segment, on the other hand, is likely to witness a comparatively higher growth of 8-10 per cent in FY2026, Icra stated. While an uptick in construction and mining activities and a steady economic environment are expected to support demand for the LCV and M&HCV truck segments, replacement demand is likely to drive growth in the buses category, it added.