The commercial vehicle market in India ended December 2025 with both resilience and challenges. According to the latest FADA Research data, retail sales reached 83,666 units, reflecting a 9.65% decline compared to December 2024. Despite this year-on-year drop, the sector remains structurally sound due to sustained logistics activity, ongoing infrastructure projects, and regular fleet upgrades.
Key Highlights from December 2025
- Total CVs Sold: 83,666 units
- Year-on-Year Change: 9.65% decrease from December 2024
- Dominant Segment: Light Commercial Vehicles (LCVs)
- Fastest Growth: Medium Commercial Vehicles (MCVs)
- Top OEM: Tata Motors with a 35.33% market share
- Emerging Trend: Growing presence of electric and specialized OEMs
Market Performance Analysis
Year-on-Year and Base Period Comparisons
In December 2025, retail CV sales dropped from 92,604 units in December 2024. However, compared to an earlier reference point (67,145 units), sales increased by 24.6%. This pattern underscores the influence of supply deadlines and tender completions in the short term, while long-term demand is supported by freight flows, infrastructure investments, and urban logistics needs.
Segment-Wise Performance
Light Commercial Vehicles (LCVs) Lead the Market
- Units Sold: 49,251
- Change from Last Year: 13.04% decrease
- Growth from Base Period: 22.45% increase
LCVs remain the largest segment, driven by demand for e-commerce, FMCG distribution, and urban logistics. Small fleet owners and last-mile operators played a significant role in shaping sales trends.
Medium Commercial Vehicles (MCVs) Show Robust Growth
- Units Sold: 6,411
- Year-on-Year Change: 11.38% decline
- Base Period Growth: 52.10% increase
MCVs experienced the fastest recovery, fueled by business transportation needs, institutional fleet upgrades, and the construction sector.
Heavy Commercial Vehicles (HCVs) and Buses Remain Stable
- Units Sold: 27,941
- Year-on-Year Change: 2.51% decrease
- Growth from Base Period: 23.43% increase
HCVs maintained their stability, supported by demand from mining, road construction, and long-distance freight.
Specialized and Electric OEMs Gain Traction
- Units Sold (Others): 63
- There is a noticeable rise in demand for low-volume, specialized, and electric vehicles, particularly in the bus segment, indicating a shift toward alternative energy solutions.
OEM Performance and Market Leadership
Tata Motors Leads the Market
- Units Sold: 29,560
- Market Share: 35.33%
Tata Motors maintained its leadership thanks to a broad portfolio spanning LCVs to HCVs, a strong dealer network, and a growing presence in the electric CV segment.
Mahindra Holds Strong Second Position
- Units Sold: 22,766
- Market Share: 27.21%
Mahindra continues to excel in pickups, small work vehicles, and rural markets, supported by an extensive product range and deep market penetration.
Ashok Leyland Remains Competitive
- Units Sold: 15,238
- Market Share: 18.21%
Ashok Leyland’s growth was propelled by medium and heavy trucks, as well as bus demand, making it a preferred choice for challenging applications.
VE Commercial Vehicles (Eicher) Grows Consistently
- Units Sold: 6,737
- Market Share: 8.05%
Eicher’s performance was driven by a balanced truck-bus portfolio, a strong regional presence, and a focus on fuel efficiency.
Electric and Emerging OEMs on the Rise
- Switch Mobility Units Sold: 320
- Market Share: 0.38%
Electric buses, supported by government urban transit initiatives, are gaining ground, and niche OEMs are collectively expanding their market share.
Trends and Future Outlook
Electric Mobility: Slow but Steady Growth
While electric CV sales are still modest, there is a gradual increase, particularly in electric buses and last-mile delivery vehicles. This is aided by government policies, public contracts, and the long-term benefits of EVs.
Expert Insights: December 2025 in Perspective
- The market is transitioning from instability to stability.
- Infrastructure-related segments remain robust.
- Fleet replacement cycles are normalizing.
- Market leaders with strong networks and financial resources are best positioned to manage short-term fluctuations.
2026 Forecast: A Stable Path Forward
Looking ahead, India’s commercial vehicle market is expected to remain stable or even grow in 2026, driven by:
- Increased infrastructure investments (roads, bridges)
- Rising freight demand
- Focus on clean transportation by the government
- Gradual adoption of electric commercial vehicles
Despite short-term headwinds, the sector’s long-term fundamentals remain strong.
Conclusion
At the close of December 2025, India’s commercial vehicle market faced short-term pressures but retained strong long-term fundamentals. LCVs continued to dominate, MCVs showed robust recovery, and Tata Motors remained the clear leader. The outlook for 2026 is positive, with infrastructure and electric transportation poised to fuel further growth in the CV sector and the broader economy.
FAQs
FADA Research reports 83,666 commercial vehicles sold.
Tata Motors held the lead with a 35.33% market share.
LCVs recorded the highest sales, while MCVs showed the greatest improvement over previous periods.
Yes, there was a moderate but steady rise in electric and specialized vehicles, especially in the bus segment.
Stable to growing sales are expected, supported by infrastructure development, freight demand, and fleet upgrades.