Volvo Eicher Commercial Vehicles (VECV), a joint venture of Eicher Motors and Volvo Group, expects steady demand for commercial vehicles (CVs) in the second half of FY26. The growth is likely to be supported by GST rate cuts, government infrastructure projects, and replacement-led demand.
Vinod Aggarwal, Managing Director and CEO of VECV, said that the first half of the year saw slightly lower volumes due to extended monsoon rains. “On the bright side, infrastructure spending is strong, GST rate rationalization is boosting consumption, interest rates are stable, inflation is easing, and replacement demand is healthy. These factors point to a better second half,” he noted.
Aggarwal added that growth in the two-wheeler and passenger car sectors is also helping commercial vehicles. “More consumption and goods movement naturally increase demand for trucks. We are well-positioned for the second half and expect another good year,” he said.
Light and medium-duty trucks, exports, and bus sales are expected to lead growth for the rest of FY26. Heavy-duty trucks will see moderate growth. In the first half, light and medium trucks grew 9%, exports jumped 40%, bus sales increased 7–8%, and small commercial vehicles rose 6–7%. Heavy-duty trucks grew only 0.2% as operators move to higher-tonnage vehicles, meaning fewer trucks but more freight capacity. Aggarwal explained, “Truck productivity has risen, with many trucks now running 20,000–25,000 km a month, doubling earlier levels. This reduces fleet size but speeds up replacement cycles.”
He also highlighted that the use of rail freight corridors, such as Maruti Suzuki moving 25% of its car transport by rail, has slightly reduced truck volumes. “Despite this, heavy-duty truck sales still grew 0.2% in H1. We expect better performance in H2,” he said.
In Q2 FY26, VECV sold 21,901 units, up 5.1% from last year, while H1 sales rose 7.5% to 43,511 units. Light and medium trucks held a 34.8% market share with 10,096 units sold. Heavy-duty trucks grew 3.5%, and buses reached 3,217 units.
Revenue for Q2 grew 10% to ₹6,106 crore, profit after tax increased 19.7% to ₹249 crore, and EBITDA rose 8% to ₹479 crore. For H1, total revenue was ₹11,777 crore, up 11% year-on-year.
