Heavy Trucks and Electric Commercial Vehicles Drive Growth in India's CV Market as Buses Lag

India's commercial-vehicle market is witnessing contrasting growth patterns across sectors, with conventional freight trucks and electric commercial vehicles recording strong demand while buses struggle to keep pace. Data from VAHAN indicates that goods-carrier registrations jumped 21.4% to 9.05 lakh units during January-October 2026, compared to 7.45 lakh units in the corresponding period a year earlier. In contrast, bus registrations edged up by just 1.8% to 1.13 lakh units.

Electric commercial vehicles recorded significant momentum, with retail registrations surging 162.3% to 4,942 units in October alone, accounting for 4.29% of total commercial-vehicle retail sales. Federation of Automobile Dealers Associations (FADA) President Sai Giridhar noted that commercial vehicles, three-wheelers, and tractors recorded their best-ever October retail volumes. Industry dealers identified infrastructure development, mining, and freight movement as the primary demand drivers, with 50.41% expecting continued growth through January.

October retail figures highlighted a divergence across weight categories. Heavy commercial-vehicle registrations increased 28.95% to 36,879 units, and medium commercial vehicles grew 21.16% to 9.042 units. However, light commercial vehicles declined 9.57% to 69,148 units. Overall commercial-vehicle retail sales rose 2.29% to a record 1,15,140 vehicles.

Ashok Leyland Chief Marketing Officer Sanjeev Kumar indicated that expanding light commercial vehicle volumes could provide stability as heavy-truck demand moves through typical cyclical fluctuations. The Hinduja Group company reported a 40.6% increase in October medium and heavy truck dispatches to 11,613 vehicles, while bus volumes declined 11.3% to 2,314 units. Light commercial vehicle dispatches grew 14.5% to 7,961 units.

Tata Motors led the October retail market with 39,914 registrations, representing an 11.2% increase and a 34.67% market share. The company's wholesale dispatches climbed 27% to 47,652 vehicles, supported by a 225% increase in international sales. During the January-October period, Tata led goods-carrier registrations with 3.06 lakh vehicles, followed by Mahindra at 2.50 lakh units and Ashok Leyland at 1.65 lakh units. Tata also led bus registrations with 36,656 vehicles.

Within the electric commercial vehicle segment, Tata Motors led October registrations with 1,740 units and a 35.2% market share. Euler Motors followed with 1,272 vehicles and a 25.7% share, while Mahindra Last Mile Mobility secured third place with 538 registrations and a 10.9% share. Together, these three manufacturers accounted for nearly 72% of electric commercial vehicle registrations.

Other manufacturers also reported varied performance figures. Volvo Eicher Commercial Vehicles reported a 34.9% increase in October dispatches to 10,861 vehicles. Mahindra's truck and bus division saw dispatch growth of 82% to 1,773 vehicles, with cargo volumes more than doubling. SML Mahindra Executive Chairman Vinod Sahay attributed growth to festive demand and infrastructure activity while flagging input-cost pressures.

"The data from the commercial vehicle sector highlights a clear economic transition driven by infrastructure and industrial freight demand. While heavy trucks and electric vehicles are scaling rapidly, the uneven recovery in light commercial vehicles and buses points to shifting urban logistics and cyclical demand patterns. Manufacturers must continue to diversify their product portfolios and manage input-cost pressures effectively to navigate these varying speeds across segments." — Dr. Shishir Gupta, Founder & CEO, StartupLanes