Mahindra Expects Double-Digit Growth in Light Commercial Vehicle Market by FY26

Key Highlights:

• Mahindra LCV sales hit 69,600 units in Q2 FY26.

• Market share rose to 53.2%.

• GST cut boosted small fleet purchases.

• Strong recovery after slow quarters.

• Double-digit growth expected in FY26.

After a slow phase in India’s light commercial vehicle (LCV) market,Mahindra & Mahindra Ltd. now expects the segment to bounce back strongly. The company projects that the market will end the current fiscal year with low double-digit growth, aligning with its earlier estimates.

Mahindra Sees Strong Momentum in LCV Sales

Mahindra’s LCV sales under 3.5 tons reached 69,600 units in the second quarter of FY26, compared to 61,700 units during the same quarter last year. This steady rise in sales marks a recovery in demand after several quarters of stagnation.

In the past two years, Mahindra’s quarterly volumes have remained between 59,000 and 68,000 units, indicating that the segment is now moving towards a more consistent growth path.

Executive Outlook on Industry Growth

Rajesh Jejurikar, Executive Director and Chief Executive of Mahindra’s Auto and Farm Sectors, shared a positive outlook for the LCV segment.

“We had assumed the industry growth would be robust and in double digits,” Jejurikar said. “The first quarter did not quite play out that way. However, with the momentum we are seeing now, it will probably end up that way.”

This optimism reflects renewed activity in India’s logistics and last-mile delivery markets, key sectors driving demand for LCVs.

Market Share and Growth Factors

Mahindra’s market share in the LCV segment has grown from 49.7% to 53.2%, further strengthening its leadership position. The company attributed this progress to several factors, including improved demand and supportive government policies.

One of the major growth drivers has been the government’s reduction in the Goods and Services Tax (GST) on LCVs, which has helped lower ownership costs. This change encouraged more small fleet owners and logistics operators to expand their vehicle fleets.

Revival in the LCV Market

The LCV segment, which plays a vital role in India’s last-mile delivery and small-scale logistics operations, has faced challenges due to muted freight movement in recent years. However, Mahindra’s latest data suggests that the segment is now recovering steadily.

With strong sales momentum, higher market share, and supportive government initiatives, Mahindra expects the light commercial vehicle market to close FY26 on a strong note with double-digit growth, signaling a healthy rebound for India’s commercial vehicle industry.

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CMV360 Says

Mahindra & Mahindra’s confidence in the LCV market signals a strong revival in India’s logistics and delivery sectors. With rising sales, expanding market share, and GST-led cost benefits, the company expects the market to end FY26 with double-digit growth. This growth trend reflects improving demand among small businesses and logistics players, marking a positive turnaround for the country’s light commercial vehicle industry.