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India CV Sales: May Growth Slows Sequentially
26 Jun
Summary
- Domestic CV wholesale volumes declined 1.1% month-on-month.
- Retail sales grew 5.3% year-on-year, but fell 18.3% sequentially.
- Rural markets showed stronger year-on-year retail growth than cities.
India's commercial vehicle (CV) sector demonstrated robust year-on-year growth of 13.5% in wholesale volumes for May 2026. This expansion was influenced by the lingering effects of GST rate reductions and a favorable base from the prior year. However, a sequential analysis revealed a slight moderation, with domestic wholesale volumes decreasing by 1.1% compared to the previous month.
Retail sales also followed a similar trend, showing a 5.3% year-on-year increase. Despite this annual gain, sequential retail sales experienced an 18.3% dip. A significant trend observed was the broadening of demand into rural areas, which reported stronger year-on-year retail growth than cities.
The light commercial vehicle (LCV) segment continued its strong performance, with a 7.7% year-on-year rise in retail volumes, driven by GST-related demand and enhanced last-mile logistics. In contrast, the medium and heavy commercial vehicle (M&HCV) segment saw a more modest 1.9% year-on-year increase in retail volumes, impacted by higher fuel prices.
Looking ahead, the domestic CV industry is projected to achieve moderate wholesale volume growth of 4-6% for FY27. This forecast accounts for the high base of FY26 and anticipates continued support from replacement demand and infrastructure spending, although commodity and fuel price pressures remain challenges.
