India's M&HCV Truck Segment Achieves Post-Pandemic Milestone in FY26
The fiscal year 2025–26 has emerged as a pivotal period for India's medium and heavy commercial vehicle (M&HCV) market, with the truck segment not only recovering robustly after two years of sluggish performance but also exceeding pre-Covid sales volumes for the first time since the pandemic. This marks a significant turnaround, as the passenger carrier segment within the M&HCV category had already surpassed pre-Covid levels in FY24, while the truck segment only caught up in the last fiscal year.
Sales Figures and Growth Trends
According to data from the Society of Indian Automobile Manufacturers (SIAM), total medium and heavy-duty truck sales reached approximately 3.56 lakh units in FY26, compared to 3.51 lakh units in FY19, the pre-Covid peak. This represents a 16% growth in truck sales for FY26, whereas the bus segment experienced a marginal decline. Overall, M&HCV wholesale volumes, including buses, climbed to 4.23 lakh units in FY26, surpassing the previous high of 3.91 lakh units in FY19, which included 39,604 bus units.
Factors Driving the Recovery
The recovery has been underpinned by several key factors. Steady GDP growth and supportive government policies, such as increased infrastructure spending and the implementation of GST 2.0, have played crucial roles. Additionally, rising freight movement and improved highway infrastructure have enhanced vehicle utilization rates. Rajesh Kaul, vice president and business head for trucks at Tata Motors, highlighted that improving financing availability and healthier transporter sentiment have also contributed to normalizing demand.
Performance of Major Players
Among the leading manufacturers, Tata Motors, the segment leader, reported medium and heavy-duty truck volumes of about 1.77 lakh units in FY26, slightly down from 1.81 lakh units in FY19. Ashok Leyland, the second-largest player, posted sales of 1.07 lakh units in FY26, compared to 1.16 lakh units in FY19. In contrast, VECV, the Volvo-Eicher joint venture, saw its truck volumes across both Eicher and Volvo brands exceed pre-Covid levels, with total sales rising to 62,012 units in FY26 from 40,456 units in FY19.
Challenges and Outlook
The segment faced challenges post-FY19, including the transition to BS-VI emission norms, which increased truck prices, and revisions to axle-load norms that reduced fleet requirements. Looking ahead, Poonam Upadhyay, director at Crisil Ratings, noted that after growing at 13% in FY26, M&HCV volumes are expected to normalize to mid-single-digit growth in FY27. GST rationalization continues to support affordability and replacement demand, with core drivers like infrastructure execution and freight activity remaining strong.
However, Kaul cautioned about potential near-term uncertainties due to the ongoing West Asia conflict, which could impact commodity and crude oil prices, as well as currency fluctuations. Upadhyay added that while the direct effect on domestic M&HCV demand is likely limited, persistent conflict and rising fuel prices could pressure fleet operator economics and influence procurement decisions.
