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India’s commercial vehicle (CV) sector showed significant signs of recovery in March 2025, with major manufacturers reporting positive growth despite an overall challenging fiscal year. The latest sales data from Tata Motors, Mahindra & Mahindra, Ashok Leyland, and VE Commercial Vehicles (VECV) reveal emerging trends in different segments as the industry navigates changing market dynamics.
March Performance Shows Positive Momentum
Mahindra & Mahindra emerged as the strongest performer in March 2025, with its commercial vehicle sales reaching 23,951 units domestically. The company’s LCV 2T-3.5T segment grew by an impressive 23% year-on-year to 18,958 units, while its three-wheeler sales surged 47% to 7,752 units.
Ashok Leyland reported a 6% increase in total vehicle sales for March 2025, reaching 24,060 units compared to 22,736 units in March 2024. The company’s M&HCV bus segment was particularly strong with 25% growth, selling 4,019 units.
Tata Motors saw varied performance across segments, with its M&HCV truck sales increasing marginally by 1% to 12,856 units and ILMCV truck sales growing by 6% to 7,181 units. However, the company’s SCV cargo and pickup segment declined by 17% to 12,759 units, resulting in an overall 4% decrease in domestic CV sales to 38,884 units for March.
VECV, the unlisted subsidiary of Eicher Motors, reported a 7.6% growth in overall sales to 12,094 units in March 2025. Its domestic sales rose 6.3% to 11,187 units, with particularly strong performance in the bus segment where LMD bus sales increased by 23.2% to 2,831 units and HD bus sales surged by 33% to 310 units.
Small Commercial Vehicle Segment Faces Headwinds
The Small Commercial Vehicle (SCV) segment has shown mixed results across manufacturers, with most players experiencing challenges in this category. Tata Motors reported the steepest decline, with its SCV cargo and pickup sales dropping by 17% to 12,759 units in March 2025 compared to 15,367 units in the same month last year. For the full fiscal year, this segment saw a 13% decline to 138,742 units from 159,248 units in FY24.
Mahindra’s performance in the smaller CV category was also subdued, with its LCV <2T segment decreasing by 12% to 3,530 units in March 2025 compared to 4,012 units in March 2024. The full-year performance mirrored this trend with a 12% decline.
The SCV segment has been under pressure due to several factors including the rise of e-commerce players creating their own last-mile delivery fleets and increasing competition from three-wheelers in urban logistics. Moreover, high fuel costs and rising finance rates through most of the year have impacted small operators.
However, Mahindra continues to dominate the LCV segment, particularly in the 2T-3.5T category where it has crossed 50% market share. The company’s strong growth of 23% in this category indicates a shift in customer preference toward slightly larger commercial vehicles with better economics for operators.
Medium and Heavy Commercial Vehicles Show Resilience
The Medium and Heavy Commercial Vehicle (M&HCV) segment demonstrated greater resilience compared to smaller CVs, with most manufacturers reporting positive growth in March 2025.
Ashok Leyland’s domestic M&HCV truck sales grew by 9% to 12,882 units in March 2025 from 11,773 units in March 2024, though its cumulative figures for the fiscal year showed a 5% decline. The company’s M&HCV bus segment was a star performer with 22% growth in March and 18% for the full year.
Tata Motors reported modest growth in its HCV truck segment with a 1% increase to 12,856 units in March 2025. The company’s ILMCV trucks performed better with 6% growth to 7,181 units. However, for the full fiscal year, Tata’s HCV truck segment saw a 9% decline while ILMCV trucks grew by 6%.
VECV’s performance in the heavy-duty segment was also positive, with domestic HD (≥18.5T) trucks growing by 3.9% to 3,079 units in March 2025. For the full year, this segment showed a 2.4% increase to 22,037 units.
The M&HCV segment has shown more stability due to continued infrastructure development projects, improved freight economics in certain corridors, and replacement demand from fleet operators.
Industry observers note that the M&HCV segment’s performance is a bellwether for economic activity, and its recovery suggests improving fundamentals in the logistics and transportation sectors.
Bus Segment Leads
A standout trend across manufacturers was the robust performance of the bus segment, signaling a strong revival in public transportation demand. Tata Motors’ passenger carriers grew by 4% to 6,088 units, while Ashok Leyland and VECV reported even stronger growth in their bus segments at 25% and 23.2% respectively.
The significant growth in the bus segment across manufacturers may indicate a strong revival in public transportation demand and institutional purchases by state transport undertakings.
Export Performance
Export performance varied significantly among manufacturers. VECV demonstrated remarkable growth of 44.3% in exports, reaching 665 units. Similarly, Tata Motors reported a 44% increase in international business to 2,238 units. Mahindra showed the strongest export growth at 163%, albeit from a smaller base, with 4,143 units exported in March 2025.
Full-Year Results
Despite the positive March numbers, full-year results for FY 2024-25 reveal the challenges faced by the industry throughout the year.
Tata Motors reported a 5% decline in total CV sales for FY25 at 376,903 units compared to 395,845 units in FY24. Ashok Leyland’s cumulative domestic sales reached 179,842 units, representing a marginal decline of 2% compared to the previous fiscal year.
VECV, however, managed a 5.4% growth in annual sales, reaching 90,161 units. This growth was primarily driven by a 39.2% increase in exports and strong performance in the bus segment.
Girish Wagh, Executive Director at Tata Motors Ltd., noted, “FY25 ended on a positive note for the Commercial Vehicles industry, post the YoY demand decline witnessed earlier. Tata Motors Commercial Vehicles navigated the headwinds effectively, to record wholesales of 376,903 units, outpacing industry growth in trucks and commercial passenger carriers.”
According to Veejay Nakra, President of Automotive Division at M&M Ltd., the company saw strong performance in its commercial vehicle segment, particularly in the LCV 2T-3.5T category where Mahindra has crossed 50% market share.
Industry Outlook
Looking ahead to FY26, industry leaders express cautious optimism. Tata Motors anticipates sustained growth despite global headwinds, with demand expected to rise driven by higher fleet utilization, financial support from rate cuts, lower crude oil prices, and a renewed focus on large-scale infrastructure projects.
Industry experts believe the commercial vehicle market will continue its recovery trajectory, supported by government infrastructure investments, improving economic activity, and technological advancements including a growing shift toward cleaner technologies such as CNG and electric variants.
The strong March performance across manufacturers suggests that the sector is rebounding from previous challenges, with particular strength in the bus segment and growing interest in alternative fuel vehicles.
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