Big impact of GST cut? Commercial vehicle sales up 27 percent in January; What about the ICRA report?
- Commercial vehicle sales rose 27 percent in January
- A direct result of GST cuts?
- A picture of the coming years, what does the report say?
The past year and especially the month of January has been very encouraging for the Indian auto industry. According to the latest report by rating agency ICRA, the domestic Commercial Vehicle – CV industry is witnessing a huge boom. The main reason for this boom is the reduction in GST rates by the government, which has led to a huge increase in demand for trucks, buses and tempos.
Do you also charge your electric car to 100 percent? Wait, big damage can happen!
Strong performance of M&HCV and LCV segment
Sales of medium and heavy commercial vehicles increased by 15.4 percent on year-on-year basis in January. Interestingly, compared to December, this increase is as big as 22.1 percent. On the other hand, the light commercial vehicle (LCV) segment also strengthened its grip, registering a growth of 14.9 percent in January.
A direct result of the GST reduction
The reduction in GST rate on commercial vehicles has reduced vehicle prices. This has directly benefited logistics companies and transporters. In the first few months of the financial year 2026, there has been an increase of 11.3 percent in wholesale and 8.5 percent in retail, which is a very positive picture for the industry.
A picture of the coming years, what does the report say?
According to ICRA’s estimates, this boom is not limited to just one month but is said to continue in the future as well. FY 2026: Wholesale sales expected to grow by 7-9 percent. In this, the LCV segment may grow by 9-11 percent and the M&HCV segment by 7-9 percent. Bus Segment: Considering the growing demand for public transport and private travels, the bus segment is expected to grow by 8-10 percent. FY 2027 : The growth rate is likely to stabilize slightly at 4-6 percent in this year.
Comments are closed.