India’s commercial vehicle sector displayed varied performance in September 2025, with major manufacturers reporting divergent growth patterns as the industry navigated the transition to GST 2.0 and the onset of festive season demand.
Tata Motors Leads with Strong Growth
Tata Motors emerged as the clear leader in the commercial vehicles segment, reporting total sales of 94,681 units in Q2 FY26, marking a 12% increase over the same period last year. The company’s September 2025 performance was particularly robust, with total CV sales reaching 35,862 units, up 19% year-on-year.
The company’s Small Commercial Vehicle (SCV) and pickup segment demonstrated exceptional momentum, growing 30% year-on-year in September to 14,110 units, driven by new launches including the Ace Pro and Ace Gold+. For the quarter, this segment sold 34,732 units, representing an 11% increase.
“September emerged as our best-performing sales month in FY26,” said Girish Wagh, Executive Director of Tata Motors. He attributed the performance to swift action following the GST reduction announcement, enhanced product availability, and intensified market activations.
Mahindra Shows Steady Growth in LCVs
Mahindra & Mahindra reported domestic commercial vehicle sales of 26,728 units in September, reflecting an 18% growth. The company’s Light Commercial Vehicle segment in the 2-3.5 tonne category showed strong performance with 23,342 units sold, up 21% year-on-year.
For the year-to-date period through September (YTD F26), Mahindra’s LCV 2T-3.5T segment recorded sales of 114,176 units, a 12% increase over the previous year. However, the sub-2 tonne LCV segment saw a decline, with September sales at 3,386 units, down 2% from the previous year.
Nalinikanth Gollagunta, CEO of Mahindra’s Automotive Division, noted that “robust growth in dealer reported customer retails during the first nine days of Navratri” showed over 70% growth in the CV segment compared to the same period last year, though billing numbers were impacted by trailer availability constraints.
VE Commercial Vehicles Reports Flat Performance
VE Commercial Vehicles Limited (VECV), the Eicher-Volvo joint venture, reported near-flat growth with total sales of 7,619 units in September 2025, marginally up 0.1% from 7,609 units in September 2024.
The company’s domestic sales declined 2.8% to 6,652 units in September, though year-to-date domestic sales stood at 39,130 units, up 5.7% over the previous year. VECV’s export segment provided a bright spot, surging 47.4% to 700 units in September, with heavy-duty exports growing 276.7% year-on-year.
Within the domestic market, VECV’s light and medium-duty trucks under 18.5 tonnes grew 7.2% to 3,801 units, while the heavy-duty truck segment (≥18.5T) declined 4.3% to 1,955 units in September.
Mahindra Trucks & Buses Faces Headwinds
Mahindra’s heavy commercial vehicle segment (CV >3.5T), which includes both Mahindra Trucks & Buses Division (MTBD) and SML Isuzu Limited, reported combined sales of 1,904 vehicles in September, down 8% from the previous year.
Vinod Sahay, Executive Chairman of SML and President of Mahindra’s Trucks, Buses & CE division, acknowledged that “September was partially impacted by deferment of purchase by customers till introduction of GST 2.0,” though he expects demand to gradually ramp up following the full benefit transfer to customers.
Industry executives remain optimistic about the second half of FY26, citing favorable factors including the ongoing festive season, improved consumption patterns, and the full impact of GST reforms. The reduction in GST rates, announced in late September, has already triggered a surge in bookings and customer interest across the sector.
With construction, infrastructure, and mining activities expected to gain momentum, and robust product pipelines across manufacturers, the industry anticipates sustained growth in the coming months despite the mixed performance in September’s transition period.