Tata Motors expects double-digit growth for CV industry in FY27

New Delhi: Domestic commercial vehicle industry volumes are expected to grow in double digits during the full financial year 2027 despite a moderation expected in the growth rate during the second half, according to a senior official from Tata Motors.

"There will not be a demand slowdown (in the second half of the financial year), but the growth rate will go down. As we stand here today, I think FY27 is likely to end with a double-digit growth for the overall industry," Tata Motors Managing Director and Chief Executive Officer Girish Wagh told reporters on Friday.

According to SIAM data, commercial vehicle dispatches to the domestic market during the first half of the financial year 2027 grew 23.8 per cent to 5.74 lakh units from 4.64 lakh units in the year-ago period.


Demand comes on the back of robust spending on infrastructure, replacement demand of older trucks and buses, strong freight movement, and expansion of the logistics fleet.

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"H2 growth will moderate on the high base of the previous year. Because last year, post-GST, the industry had grown 21 per cent in Q3 and almost 20 per cent in Q4. So while the growth momentum as of now is likely to continue in Q3, the growth rate will certainly moderate," Wagh said.

In the financial year 2026, India's commercial vehicle sales crossed the one-million mark with a 12.6 per cent rise to 10.80 lakh units. Almost 60 per cent of the industry volume comes from light commercial vehicles. Tata Motors is the market leader, followed by Mahindra & Mahindra and Ashok Leyland.

Meanwhile, Tata Motors' domestic commercial vehicle dispatches during the first half of the year grew over 27 per cent to around 2 lakh units and the company expects to outpace the industry growth for the full year.

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"In the first half, we have already outperformed the industry growth and our intention is to continue the same in the second half as well," Wagh added.