India Commercial Vehicle Market Set to Cross Pre-Covid Peak in FY26: Tata Motors

The India commercial vehicle market is expected to surpass its pre-Covid peak in FY26, supported by improving freight availability, rising consumption and a revival in infrastructure activity, according to Tata Motors Managing Director and Chief Executive Officer Girish Wagh. He said demand momentum has remained resilient across segments and is now entering a more sustainable growth phase.
The Indian CV industry last crossed the one-million-unit mark in FY19, when total deliveries stood at 10,07,319 units. In the first nine months of FY26, the market has already recorded sales of 7.54 lakh units, reflecting year-on-year growth of about 10%, indicating a steady recovery trajectory.
On a calendar-year basis, the commercial vehicle market breached the million-unit milestone again in 2025. Industry demand is expected to remain firm, supported by improving replacement cycles and stable fleet utilisation levels across key freight corridors.
“At the rate at which we are moving, industry volumes for the year are likely to cross the earlier FY19 peak in absolute numbers,” Wagh said, adding that demand strength is visible across light, intermediate and heavy commercial vehicle categories.
Freight and infrastructure driving CV demand
The recovery in the India commercial vehicle market is being driven by higher freight generation following GST implementation and faster execution of infrastructure projects. Sectors such as cement, steel and mining are seeing improved activity, directly translating into higher vehicle deployment and replacement demand.
“Post the introduction of GST, we have seen an increase in consumption, which in turn has led to higher freight availability,” he said. “The restart of infrastructure projects has also contributed meaningfully to demand across multiple end-use sectors.”
Tata Motors performance reflects industry recovery
Tata Motors reported a strong operational performance in Q3 FY26, with domestic commercial vehicle volumes rising 18% year-on-year. Overall CV wholesales grew 20% during the quarter, supported by a sharp recovery in heavy commercial vehicles.
The company gained 100 basis points of market share sequentially, ending the quarter at 35.5%, highlighting its strengthening position in the Indian commercial vehicle market amid an improving demand environment.
“Our focus on profitable growth, disciplined pricing and an optimised product portfolio has helped us deliver sustained margin improvement,” Wagh said.
Profitability, cash flow and future outlook
Alongside volume growth, Tata Motors recorded sustained improvement in its bottom line, supported by strong cash generation and capital efficiency. Higher volumes and tighter working capital management have enabled continued investments in new products, electrification and alternate fuel technologies.
“This is now the tenth consecutive quarter of double-digit EBITDA margins, with EBIT also crossing double digits,” he told media persons after the Q3 FY26 earnings announcement.
Looking ahead, the company expects favourable demand conditions to continue into the fourth quarter and beyond, supported by macroeconomic stability and rising freight movement.
“As long as GDP growth continues and freight movement expands in line with it, we see the CV cycle remaining structurally healthy,” he said. “We believe the industry is entering a more sustainable phase of growth compared to the past.”