Commercial Vehicle Sector Gears Up for Growth as ICRA Projects 3–5% Expansion in FY2026

ICRA’s projection of a 3–5% growth in India’s commercial vehicle (CV) industry for FY2026 has sparked optimism across the auto and ancillary sectors. Stocks like Tata Motors,

, and Eicher Motors stand to benefit the most from rising infrastructure activity, government capital expenditure, and rural economic revival. , with its strong presence in medium and heavy commercial vehicles, is well-positioned to capture demand from logistics and infrastructure projects. Ashok Leyland could see an uptick in fleet replacement cycles and rural transport demand, while may gain from rising demand in light commercial vehicles. Ancillary firms such as Motherson Sumi Wiring and may also benefit from higher CV production volumes. Overall, the forecast reinforces the sector’s positive momentum, signaling a steady recovery after years of cyclical weakness.