India's commercial vehicle sales surged 27% in January 2026, boosted by a GST cut and strong retail demand, with forecasts for continued growth despite financing and infrastructure challenges.

India's commercial vehicle industry saw a 27% year-on-year surge in January 2026 wholesale volumes to 99,544 units, driven by a GST reduction from 28% to 18% effective September 2025, with both medium/heavy and light commercial vehicles posting strong retail growth. Over the first 10 months of FY2026, wholesale and retail volumes rose 11.3% and 8.5% respectively. ICRA forecasts 7-9% wholesale growth for FY2026, with LCVs and buses expected to grow faster, though long-term sustainability remains uncertain due to high financing costs and the need for infrastructure and clean energy adoption.