India Commercial Vehicles Market Size

India Commercial Vehicles Market Analysis

The India Commercial Vehicles Market size is estimated at 48.27 billion USD in 2024, and is expected to reach 65.26 billion USD by 2030, growing at a CAGR of 5.15% during the forecast period (2024-2030).

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48.27 Billion

Market Size in 2024 (USD)

65.26 Billion

Market Size in 2030 (USD)

2.30 %

CAGR (2017-2023)

5.15 %

CAGR (2024-2030)

Largest Segment by Vehicle Body Type

45.01 %

value share, Heavy-duty Commercial Trucks, 2023

Light Commercial Pick-up Trucks dominate due to their versatility, high demand from small businesses, and suitability for a variety of commercial applications, making them essential in the market.

Fastest-growing Segment by Vehicle Body Type

8.15 %

Projected CAGR, Buses, 2024-2030

HDTs are growing rapidly due to increasing demand for efficient long-haul transportation, government incentives for electric vehicles, and advancements in commercial truck technology.

Largest Segment by Fuel Category

83.90 %

value share, Diesel, 2023

Diesel leads due to its efficiency for long-haul transportation, higher torque, and established infrastructure supporting diesel engines, making it a preferred choice for commercial operations.

Fastest-growing Segment by Fuel Category

65.18 %

Projected CAGR, FCEV, 2024-2030

FCEVs are the fastest-growing segment due to advancements in hydrogen fuel cell technology, increased investment in hydrogen infrastructure, and the government's push for zero-emission vehicles.

Leading Market Player

38.74 %

market share, Tata Motors Limited, 2023

Tata motors is the leading manufacturer of commercial vehicles in India. Most of the revenue generated is from India, owing to a greater number of EV sales when compared to other countries.

Indicates a versatile approach to meet the country's diverse commercial transport needs, emphasizing efficiency and adaptability in vehicle design

India Commercial Vehicles Industry Segmentation

Buses, Heavy-duty Commercial Trucks, Light Commercial Pick-up Trucks, Light Commercial Vans are covered as segments by Vehicle Body Type. Hybrid and Electric Vehicles, ICE are covered as segments by Propulsion Type.

• The Indian commercial vehicles market encompasses various vehicle body types, including light commercial vehicles (LCVs), medium-duty trucks (MDTs), heavy-duty trucks (HDTs), and buses. This market plays a pivotal role in India's economic landscape, facilitating the movement of goods and passengers across the country's vast geography. The market trends in each vehicle segment mirror broader shifts in India's economy, infrastructure, and regulations, offering valuable insights into the transportation and logistics sectors.
• LCVs dominate the Indian commercial vehicles market thanks to their adaptability, cost-effectiveness, and ability to navigate the country's diverse and often challenging road conditions. These vehicles serve as the backbone of both urban and rural logistics, particularly in sectors like e-commerce, courier services, and FMCG distribution, where their accessibility to remote areas is paramount. The segment's growth is bolstered by favorable government policies, including reduced GST rates and initiatives supporting the MSME sector, which heavily relies on LCVs for transportation.
• MDTs and HDTs are vital for long-haul transportation, playing a key role in India's expanding infrastructure and industrial sectors. These vehicles find primary use in construction, mining, and heavy goods transportation, where their larger capacity and durability are essential. The demand for MDTs and HDTs closely aligns with economic growth, infrastructure projects, and industrial output. Recent regulatory changes, such as the adoption of BS-VI emission standards, have spurred technological advancements in this segment but have also led to increased vehicle costs, impacting demand dynamics.