Indian Commercial vehicles have grown impressively in the last five years. Indian Commercial vehicles showed a 7.8 percent CAGR between FY 2020 and FY 2024. FY 2025, it is expected to show minor degrowth and adjust the market correction. 0.99 million and 0.46 million units of Commercial vehicles sold in FY 2024 and H1 FY 2025. ACG expects that FY 2025 will register minor degrowth.
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Brand Wise Market Share:
Tata Motors leads the Indian Commercial Vehicle Market with a 36 percent market share but has lost 6 percent in the last five years. The company is launching new products in each segment, including Electric Commercial vehicles.
Daimler’s Indian Commercial vehicles could not register growth in the last 5 years. The Indian CV market showed impressive growth, but DICV remains stagnant at a 2 percent market share H1 FY 2025. The price is also very competitive after the discount.
DICV could get the exact recipe from Eicher Motors, which has increased its market share from 6 to 8 percent. It utilizes the optimization of Volvo’s product portfolio. Daimler India can also write success stories with Daimler Truck AG’s support in the area of Product Strategy.
BharatBenz has a presence in medium—and Heavy-Duty commercial vehicles (MHCV). The Market share in the MHCV segment fluctuated between 8 and 6 percent from FY 2020 to H12025.
The Indian MHCV Industry’s CAGR between FY 2020 and FY 2024 is 13.6 percent, and Daimler India CV’s CAGR is 5.1 percent. This is below half of the Industry’s CAGR.
The company started to establish a presence on the road in the Bus segment. However, BharatBenz needs to penetrate the Small and Medium Truck Fleet owners.
Eicher was a leader in the Light and Medium-Duty truck segment but struggled in the HCV segment. After a JV with Volvo, Eicher now has a significant presence in the Tipper and Tractor Trailer segment.
Maruti just increased its market share by 1 percent in H1 FY 2025. The main reason behind this is that the company is not able to launch new products and variants to target the new Truck segment.
Ashok Leyland has successfully upgraded and launched new Rigid Haulage and Buses to match product-market fit.
Premium Commercial Vehicle Segment: Volvo and Scania:
Scania and Volvo are Premium Brands in India. The trend of premium vehicle sales was almost similar, but the volumes were different. One reason that Volvo is leading the segment is that Volvo has been in India for a long time compared to Scania. 2008, the Volvo truck price was between 50K and 60K Euro INR.
Indian Commercial Vehicle Segment Share Analysis:
The Small Commercial Vehicle segment is the largest in India. The SCV segment share has declined by 8 percent. After having a wide network of quality roads, the demand for Light, Medium, and Heavy Commercial vehicles has increased. Long-distance road transportation is becoming popular. LCV, MCV, and HCV have better access to destination points.
Indian Small Commercial Vehicle Market:
The Small Commercial Vehicle market has experienced steady growth, with a CAGR of +4.7 percent, indicating positive momentum in the Indian CV industry. However, this growth is low compared to other CV segments.
The sales volume has grown from FY 2020 to FY 2023, with a slight decline in FY 2024.
Competitive Landscape:
Mahindra’s market share significantly increased from FY 2020 to 46 percent, demonstrating strong growth and leadership in the segment. The main driver of this growth is its strong position in the pickup Truck segment.
Tata Motors has seen a significant decline in market share from FY 2022 and currently holds 29 percent, indicating a competitive challenge. The market share gap between Mahindra and Tata Motors is increasing.
Ashok Leyland has maintained a stable market presence with a market share of 13 percent, showing consistency of 10 percent and above.
Maruti and Force Motors have smaller shares, at 7 and 4 percent, respectively, with minimal fluctuations over the observed period. Electric Trucks are successfully penetrating this segment.
Indian Light Commercial Vehicle Market:
The Indian LCV market grew at a CAGR of +5.9% between FY 2020 and FY 2024, showing steady expansion. FY 2024 sales increased by +26% compared to FY 2020, showing strong momentum.
Competitive Landscape:
Mahindra and Tata are two major players holding more than 65 percent of the market. Tata’s market share dropped significantly from 50 to 29 percent, indicating a significant decline.
SML Isuzu, Ashok Leyland, and Force Motors are other segment players.
Indian Medium Commercial Vehicle Market:
The Indian MCV market registered a CAGR of +7.2% between FY 2020 and FY 2024, indicating strong and steady growth. Developed Infrastructure helps create demand for both passengers and goods transportation. FY 2024 sales showed a significant +32% increase in the MCV segment.
Competitive Landscape:
Tata Motors and Eicher are two major players controlling 80 percent of the market share in H1 FY 2025. Tata Motors leads with a 41% market share, maintaining a dominant position.
Eicher follows closely at 39% with the right product market fit.
Ashok Leyland lost 10 percent of its market share in just 5 years. In H1 FY 2025, the company held a 14 percent market share in the MCV segment.
SML Isuzu has a stable market share between 4.5 and 5.5 percent. Mahindra holds only 1 percent, which shows that its Commercial Vehicle is not suitable for the MCV segment.
Indian Heavy Commercial Vehicle Market:
The Indian HCV market has experienced strong double growth with a CAGR of +17.8%, indicating a rapidly expanding segment.
FY 2024 sales saw an impressive +93% increase in sales volume, showing high demand in the HCV segment. Applications like Tourism, Intraacity, Steel, Mining, Heavy Machinery, Construction, Logistics, Cement, Port, ODC, and others drive this segment.
Tata Motors remains the market leader with a 50% share, though its share has declined by 5%, indicating increasing competition in some segments.
Ashok Leyland is the challenger, with a 42% market share, showing steady growth and a strong foothold. It has increased its market share by 4 percent in the last five years. In H1 FY 2025, the company increased its market share in this segment.
Eicher increased its market share from 4 percent to 5 percent. The company is focusing on the Tipper and TT segments along with RMC. Eicher’s tippers are performing well in mining sites. The Tractor Trailer is also creating a positive brand perception in the eyes of Medium and large fleet owners.
Mahindra and Other brands remain small players. Mahindra needs to improve its after-sales and Technology in the HCV segment.
The Indian Government is planning to construct 40km per day. This will not only boost this segment but also help to increase road transportation. India is the fastest-growing economy in the world, and it directly impacts the Indian Commercial Vehicle market.
Key highlights of the Report:
- Introduction of Indian Commercial Vehicle Market Trend and Outlook 2030
- Key Economic Indicators and their relevance for the Indian CV Industry
- Key Growth Drivers of Indian Commercial Vehicle Market
- Indian CV market size in terms of Value in USD (M) and units in millions
- SCV, LCV, MCV, and HCV Market size and competitor Analysis.
- Sales Volume, Industry changes, and Segment Share
- Product portfolio, Technical Specs, Pricing, and relevant vehicle Applications
- Product Comparison and position analysis
- Segment wise Brand perception
- Technology Roadmap of each segment
- Electric Commercial Vehicle Market Forecast and Suitable applications
- Overloading and rated payload Application and their sizes
- Application-wise Demand Analysis 2030
- Pricing Group – Premium, Budget, and Affordable
- Price wise largest CV segment and Forecast
- Truck and Bus Fleet owner’s types – Characteristic, Typical fleet size, and their buying behavior
- Model-wise Product life cycle stage and expected time to replacement by new models
- Digital Strategy
- After Sales Analysis – Customer satisfaction Analysis
- Spare parts pricing Comparison
- Customer voice – Survey and Analysis
