Commercial Vehicle Market to Surpass Pre-Pandemic Levels by FY26, Says Tata Motors
Tata Motors forecasts that India’s commercial vehicle (CV) market will exceed the pre-pandemic peak in FY26, building on strong industry demand and supportive economic conditions. According to company leadership, sustained growth in freight activity and a revival in infrastructure projects are major drivers behind this momentum. (auto.economictimes.indiatimes.com)
India’s CV industry last peaked in FY19 with over 1 million units sold. Recent industry data show robust sales acceleration in the current fiscal year, thanks in part to demand recovery following GST rationalisation and infrastructure-led freight growth. With replacement demand rising and logistics activity expanding, Tata Motors’ management expects overall industry volumes in FY26 to surpass the earlier pre-COVID-19 peak.
However, Tata Motors also cautioned that growth in the CV segment remains cyclical, tied closely to broader GDP trends, freight availability, fuel cost pressures, and regulatory shifts that could influence near-term demand.
Editor’s View: Why This Matters for the Tyre Industry
The commercial vehicle market growth forecast has significant implications for the tyre industry because commercial vehicles are among the largest consumers of heavy-duty and medium tyres. As demand for trucks, buses, and light commercial vehicles expands beyond pre-pandemic levels, tyre makers could see a substantial rise in both original equipment and replacement tyre demand. Improved freight movement and logistics activity translates directly to heavier usage and faster replacement cycles for commercial tyres.
Moreover, stronger sales across CV segments can encourage tyre manufacturers to invest more in capacity expansion and technology upgrades to meet evolving performance and durability expectations. However, industry participants will need to watch fuel costs and regulatory shifts closely, as these factors influence fleet utilisation and replacement patterns.
