Bada Dost, the small commercial vehicle of Ashok Leyland
After a modern action in fiscal year 2015, the segment of light commercial vehicles (LCV) of India is ready for a rebound in fiscal year 26, with industry representatives and analysts that project a single digit growth in the back or improving the economic indicators and the increase.
Although the General Commercial Vehicle Market (CV) showed mixed trends, the LCV segment, in particular, reported a flat year -on -year growth in the fourth quarter of fiscal year 2015. However, Dryentialy registered an increase of 7 percent, signing early signs of a recovery.
The industry believes that multiple tail winds could boost the growth of the fiscal year 26. “We see a growth of mid-digit digits with a slight skim that was seen last year,” said Amandep Singh, president-LCV, international operations, defense and energy solutions, Ashok Leyland.
“The full year decrease of 2 percent was largely due to a strong drop in Q2 Fy25, aggravated by the base effects and the increase in the competition of three-wheeled electric vehicles in the segment of small commercial vehicles U-T-Tonne (SCV), which represents 20-22 percent of the total LCV volumes,” said Poonam Upadhyay, director of Crisilias. “However, this competitive pressure is mainly limited to the low Tala SCV category.”
According to Upadhyay, LCV volumes are expected to recover by 4-6 percent, backed by replacement demand, improved economic activity, last mile delivery requirements and the expansion of storage facilities in levels of level 2 and -3.
M & HCV segment bounces
In contrast, the medium and heavy commercial vehicle segment (M&HCV) has already begun to show signs of a structural recovery. The segment registered a 4 percent increase in the fourth quarter of fiscal year 2015, promoted by the execution of road infrastructure, subway and construction projects. With a 10-11 percent projected increase in the capital expenditure of the central government, the impulse in the M&HV segment is expected to continue until fiscal year 2016. The demand for replacement is also expected, particularly from aging bus fleets, supports volume growth.
In general, the volumes of national commercial vehicles, including the segments of LCV and M & HCV, are projected to grow by 3-5 percent in the 2016 fiscal year, with the pin segment (both LCV and M&CV) that also contributes to recovery.
Posted on April 18, 2025