The auto sector continued to witness strong traction in retail volumes, with sustained momentum across segments following GST cuts. Wholesale volumes across all categories recorded double-digit growth.
Domestic commercial vehicle (CV) wholesales rose over 10% year-on-year, driven by robust demand in the medium and heavy commercial vehicle (M&HCV) segment.
Meanwhile, retail goods CV volumes surged 19% YoY in March 2026, supported by strong growth in the medium and heavy goods vehicle (MGV and HGV) segments.
In the commercial vehicle sector, Tata Motors achieved a robust 17% increase in sales, totaling 47,976 units, with domestic sales rising by 18%. Ashok Leyland witnessed a more modest total sales growth of 5%, reaching 25,381 units, with the increase primarily driven by the light commercial vehicle segment, while medium and heavy vehicle sales remained steady.
On the other hand, Force Motors Ltd saw a 14% year-on-year growth in sales for March, recording 4,126 units, up from 3,606 units during the same month last year. For the entire financial year FY26, the company reported a 20% year-over-year increase in total sales, achieving 30,531 units.
Why are CV volumes growing?
Sunny Agrawal – Head of Fundamental Research at SBI Securities, explained that CV volumes grew in double digits in March 2026 on a YoY basis driven by 25.5% growth in the Medium CV sub-segment.
According to Agrawal, factors such as infrastructure and construction push from the government as well as revival in the LCV segment following the GST rate reduction are boosting the robust volume growth. The replacement cycle too seems to have picked up with the average age of the current on road fleet being 10 to 10.5 years vs historical average of 7 – 7.5 years.
However, Agrawal believes that the geopolitical tensions in the Middle East has impacted sentiment a bit, particularly among the small fleet owners who would be unable to pass on the higher fuel costs to customers if the conflict continues to drag on further. Tighter liquidity conditions and risk aversion could also impact financing from banks and NBFCs for new CV purchase.
“We continue to remain positive on Ashok Leyland and Tata Motors CV from a medium to long term horizon,” added Agrawal.
Furthermore, as reported by Reuters, auto dealers in India on Monday, April 6, cautioned about potential disruptions in supply or dispatches in the near future due to the ongoing conflict in West Asia, which has increased raw material costs, despite total sales for the fiscal year reaching a record high.
The wider operational landscape is being impacted by the ongoing conflict, as stated by the Federation of Automobile Dealers Associations (FADA), according to the news report.
The war has caused a surge in oil and gas prices, elevating fuel and logistics expenses throughout the auto supply chain, while also increasing the costs of essential metals such as aluminum, copper, and steel that are utilized in vehicle production, according to the news report.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
