India Commercial Vehicle Market to Grow with a CAGR of 5.11% through 2031

Rising requirements for last-mile delivery, the growth of e-commerce logistics, and increasing demand for urban freight transport are key factors propelling market growth during the forecast period 2027–2031.

According to TechSci Research report, “India Commercial Vehicle Market – By Region, Competition, Opportunities and Forecast, 2021-2031F”, The India Commercial Vehicle Market was valued at USD 53.89 Billion in 2025 and is expected to reach USD 72.67 Billion by 2031 with a CAGR of 5.11% during the forecast period.

India’s commercial vehicle market is undergoing transformation shaped by infrastructure expansion, government policy thrust, and the growing formalization of the logistics sector. The surge in public infrastructure projects—spanning highways, ports, and industrial corridors—is stimulating demand for heavy-duty trucks and construction-oriented commercial vehicles. Large-scale government investments under programs like the PM Gati Shakti and Bharatmala Pariyojana are fueling fleet purchases, particularly for heavy and multi-axle vehicles used in long-distance freight and bulk material movement.

At the same time, the enforcement of stricter regulatory standards such as BS-VI emission norms and mandatory safety features is pushing manufacturers to offer technologically advanced, durable, and fuel-efficient models. The increased focus on fleet modernization is encouraging organized logistics companies to invest in new-generation vehicles with telematics, fleet management systems, and lower operating costs. Moreover, the electrification of select segments, especially within the light and medium commercial vehicle categories, is gaining traction as fleet operators seek operational cost advantages and alignment with sustainability mandates. Rising fuel prices and a sharper focus on total cost of ownership are influencing buying decisions, while state-level incentives and financial support mechanisms are broadening market participation for both small fleet owners and large logistics players.

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India Commercial Vehicle Market is segmented by vehicle type, propulsion type, end user, and Region.

In 2025, electric vehicles emerged as the fastest-growing segment in India’s commercial vehicle market, supported by rising fleet electrification initiatives and government-driven incentives. The segment saw sharp demand traction in urban freight, last-mile delivery, and intra-city logistics operations, particularly in categories like light commercial vehicles and smaller haulage trucks. Many fleet operators, driven by sustainability targets and cost optimization goals, actively transitioned to electric vehicles, encouraged by a lower total cost of ownership compared to conventional fuel vehicles. Advancements in battery technology, increased payload capacities, and improved range capabilities of electric commercial vehicles contributed to their growing acceptance across logistics, e-commerce, and retail distribution networks. Access to financial support through leasing models and favorable state-level policies helped smaller operators participate in the electric shift, making 2025 a breakthrough year for electric commercial mobility in India.

West India recorded the highest growth in commercial vehicle demand in 2025, largely driven by its expanding warehousing hubs, robust port infrastructure, and strong industrial base. The region, anchored by states like Maharashtra and Gujarat, witnessed a surge in demand for both intra-city and inter-state logistics vehicles, with industrial corridors and manufacturing clusters fueling the need for efficient cargo movement. The combination of active port operations, growing e-commerce penetration, and supportive state-level transport policies enhanced the uptake of commercial vehicles in this region. Rapid growth in sectors like retail, construction, and organized logistics further propelled demand, positioning West India as a key growth driver in the national commercial vehicle landscape.   

Major companies operating in India Commercial Vehicle Market are:

• Ashok Leyland Limited
• Eicher Motors
• Force Motors Limited
• Mahindra & Mahindra Ltd.
• Maruti Suzuki India Limited
• Piaggio Vehicles Private Limited
• SML Isuzu Limited
• Tata Motors Limited
• Toyota Motor Corporation
• VE Commercial Vehicles Limited

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“Beyond electric mobility, there is increasing interest in alternate fuel options like CNG and LNG for commercial vehicles. With expanding CNG infrastructure and lower fuel costs, many fleet operators are transitioning to cleaner fuel alternatives to reduce emissions and operating expenses. LNG is also gaining attention for long-haul heavy-duty trucks, especially in industrial and logistics corridors”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"India Commercial Vehicle Market By Vehicle Type (Light Commercial Vehicles, Medium Commercial Vehicles, Heavy Commercial Vehicles), By Propulsion Type (ICE Vehicles, Electric Vehicles), By End User (Individual, Fleet Owner), By Region, Competition, Opportunities and Forecast, 2021-2031F”, has evaluated the future growth potential of India Commercial Vehicle Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Commercial Vehicle Market.

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