TL;DR
India's commercial vehicle wholesale volumes surged by 27% in January 2026, largely due to GST rate reductions and increased freight activity.
The Indian commercial vehicle (CV) sector experienced a robust 27 percent year-on-year (YoY) growth in wholesale volumes during January 2026, reaching 99,544 units. This strong performance also represented a sequential growth of 1.9 percent compared to December 2025.
According to ICRA, the primary driver for this impressive YoY growth was the reduction in the Goods and Services Tax (GST) rate from 28 percent to 18 percent, effective September 22, 2025. Increased freight activity within the goods segment further supported this positive trend. Both medium and heavy commercial vehicle (M&HCV) and light commercial vehicle (LCV) segments saw healthy retail volume growth in January, indicating improved market momentum.
