Eicher Motors Sees Steady CV Growth in H2 FY26 as GST Reform and Infra Push Boost Demand
Add CMV360 on GoogleEicher Motors expects steady CV growth in H2 FY26, driven by GST reform, infra push, exports, and rising replacement demand. LMD trucks, buses, and overseas markets show strong performance despite slower momentum in heavy-duty segments.
By Robin Kumar Attri
Key Highlights
LMD trucks up 9% in H1.
Exports grew 40%.
Bus sales rose 7–8%.
Heavy-duty trucks up 0.2%.
Q2 sales grew 5.1%.
Volvo Eicher Commercial Vehicles (VECV), the joint venture between Eicher Motors and Volvo Group, expects steady growth in commercial vehicle (CV) demand during the second half of FY26. The company believes that GST rate rationalisation, rising infrastructure investments, stable interest rates, and strong replacement demand will support market momentum.
H1 Performance Impacted by Extended Monsoon
According to Vinod Aggarwal, MD & CEO, VECV, sales in the first half of the year were slightly below expectations due to a prolonged monsoon, which affected freight movement and demand.
However, he highlighted strong positives:
Infrastructure spending continues at a healthy pace
GST rationalisation is boosting consumption
Interest rates remain stable
Inflation is cooling
Replacement demand is strong
“These factors give us every reason to expect higher volumes in the coming quarters,” Aggarwal said.
Expectations for H2: LMD, Exports, and Buses to Drive Growth
Aggarwal expects:
Light & Medium-Duty Trucks (LMD) to show strong growth
Exports to rise further
Bus demand to continue improving
Heavy-Duty Trucks (HDT) to grow moderately
He noted that two-wheeler and passenger car recovery will spill over into the CV segment as higher consumption increases goods movement.
Segment-Wise Market Trends
LMD trucks grew 9% in H1
Exports jumped 40%
Bus sales improved 7–8%
Small CVs grew 6–7%
Heavy-duty trucks grew 0.2%, mainly due to:
High utilisation levels
Shift towards higher-tonnage trucks
Higher productivity (20,000–25,000 km/month vs. 10,000–12,000 earlier)
Aggarwal added that rising rail freight movement, including Maruti Suzuki shifting 25% of car movement to rail, moderated truck sales slightly. Yet, VECV still achieved positive growth in the HDT segment.
VECV Sales and Financial Performance
Quarterly & Half-Yearly Performance Table
Category | Q2 FY25 | Q2 FY26 | Growth |
Total CV Sales (Units) | 20,774 | 21,901 | +5.1% |
H1 Sales (Units) | 40,476 | 43,511 | +7.5% |
LMD Truck Deliveries (Units) | — | 10,096 | (Market Share: 34.8%) |
Bus Sales (Q2) | — | 3,217 | — |
Heavy-Duty Truck Growth | — | 3.5% | — |
Financial Performance (Standalone)
Financial Metric | Q2 FY25 | Q2 FY26 | Growth |
Revenue (₹ crore) | — | 6,106 | +10% |
PAT (₹ crore) | — | 249 | +19.7% |
EBITDA (₹ crore) | — | 479 | +8% |
H1 Revenue (₹ crore) | — | 11,777 | +11% YoY |
These figures highlight VECV’s stable performance and growing market presence across segments.
Looking Ahead
Aggarwal remains confident about the company’s position for the remainder of FY26. With infrastructure growth, stable economic indicators, and strong replacement demand, VECV expects the second half to outperform the first. The company believes that improving consumption and increasing goods movement will support continued growth in the CV industry.
Also Read: Eicher Trucks & Buses Unveils Sustainable Transport Lineup at 15th Cement Expo 2025
CMV360 Says
VECV expects a strong second half of FY26 as GST reform, infrastructure investment, and stable economic conditions support commercial vehicle demand. With solid growth in LMD trucks, exports, and buses, the company remains confident despite a softer first half. Rising consumption, improved freight movement, and strong replacement trends are set to drive volumes upward in the coming quarters.
Robin Kumar Attri is a content and video professional with 2.7 years of experience in the commercial vehicle d .....
