Commercial Vehicle Industry To See 4-6% YoY Growth In FY27: ICRA

New Delhi, Jun 27 (KNN) India’s commercial vehicle industry is expected to see 4–6 per cent year-on-year (YoY) growth in wholesale volumes in FY27, ratings agency ICRA said in a report released on Friday.

The agency noted that the higher base established in FY26 is likely to moderate the pace of growth this year, PTI reported, citing the report.

Within segments, medium and heavy commercial vehicles are projected to grow 1 to 3 per cent, light commercial vehicles 6 to 8 per cent, and buses 7 to 9 per cent year-on-year over the fiscal.

Demand Drivers and Headwinds

Continued infrastructure spending, improved freight movement and replacement demand are expected to underpin volume growth. However, rising fuel costs and financing challenges remain key headwinds for the sector.

In May 2026, wholesale volumes reported a healthy 13.5 per cent year-on-year growth, though they declined 1.1 per cent sequentially. Retail volumes grew a moderate 5.3 per cent year-on-year in May, with a sequential decline of 18.3 per cent. 

ICRA emphasised that retail volumes showed stronger year-on-year growth in rural markets compared with urban counterparts, pointing to a broadening of demand for goods movement beyond metro regions.

(KNN Bureau)