Indian CV Industry to Grow 4-6% in FY27: ICRA Report

New Delhi, Jun 26 (PTI) Indian commercial vehicles industry is expected to register a moderate YoY growth of 4-6 per cent in wholesale volumes in FY27 with the broadened base of last fiscal likely to have some bearing on the growth momentum of this year, ratings agency ICRA said on Friday.

While medium and heavy commercial vehicles (trucks) and light commercial vehicles (trucks) segments are expected to witness a YoY volume growth of 1-3 per cent and 6-8 per cent, respectively, the buses segment is likely to see a 7-9 per cent YoY growth over the fiscal, ICRA said in a report.

"ICRA expects the domestic CV industry to register a moderate YoY growth of 4-6 per cent in wholesale volumes in FY2027," it added.

The broadened base of FY26 is likely to have some bearing on the growth momentum in FY27, the ratings agency noted.


Continued infrastructure spending, improved freight movement and replacement demand are expected to support volumes, although rising fuel costs and financing challenges remain key headwinds, it stated.

In May this year, the Indian Commercial Vehicle (CV) wholesale volumes reported a healthy 13.5 per cent year-on-year (YoY) growth while witnessing a sequential decline of 1.1 per cent, ICRA said.

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.

In terms of geographical spread, CV retail volumes showed higher YoY growth in rural markets vis-a-vis urban counterparts, hinting at demand broadening for goods movement beyond metro regions, it noted.