Eicher Motors Sees Steady CV Growth in H2 FY26 as GST Reform and Infra Push Boost Demand

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.

Also Read: Tata Motors Commercial Vehicles Posts ₹1,021 Crore Loss in Q2 FY26 Despite Strong Operational Growth: Revenue Rises 8.6% YoY; EBITDA Margins Improve to 12.2%

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

Financial Performance (Standalone)

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.