Top Trends in the Indian Commercial Vehicle Market in 2025
In India, the commercial vehicle market has undergone notable growth and success, with an increase in sales. According to the SIAM (Society of Indian Automobile Manufacturers), commercial vehicle sales increased to 9.69 lakh units from 9.62 lakh units between 2023 and 2024.
Several factors have led to the growth of the commercial vehicle market in India, from EV adoption to technological upgrades.
Keep reading to learn about the top trends in the CV market that have paved the way for its growth and success.
Top 5 CV Trends to Look for in India in 2025
The evolution of the commercial vehicles industry has brought the following trends in the CV market in 2025:
1. Technological Impact on CV Loan Procedure
Technological advancements are responsible for transforming every industry, and commercial vehicles are no exception. With the integration of ADAS (advanced driver assistance system), commercial vehicles like trucks and lorries are witnessing enhanced safety and efficiency. Upgrades like digital dashboards, predictive maintenance, etc., are helping operators to minimise operational costs and maximise uptime.
The financing options in the commercial vehicle sector are also upgrading with the introduction of KYC automation, AI-based risk assessment, digital lending platforms, etc. These have made loan applications and approvals faster and easier than before.
2. Increasing Financing Options for Eco-friendly Vehicles
EV penetration in the Indian market increased from 0.8% in FY24 to 0.9% in FY25, with urban areas accounting for 50.7% of the retail sales of commercial vehicles. Electric vehicles (EVs) have greatly improved sustainability and financing options in India.
With subsidised interest rates, adjustable repayment terms, and tax advantages, green financing (loans designed for environmentally friendly automobiles) has become more widely available, increasing the accessibility of EVs.
Financial institutions and government incentives support a move towards cleaner fleets, lowering the cost barrier for companies implementing electric commercial vehicles. These specialised financing options facilitate fleet operators' transition while supporting reduced emissions and reliance on fossil fuels, which benefits the economy and the environment. They also support national sustainability goals.
3. Insurance Trends: Commercial Vehicle and Truck Insurance
The technological adoption, electrification of CV, and regulatory compliance influence the commercial vehicle insurance sector. Safety features reduce the risk of accidents, so insurance companies are offering commercial vehicle insurance at competitive rates.
Fleets with advanced telematics and ADAS features often benefit from reduced premiums, as these systems lower the likelihood of accidents and improve claims management. As the market matures, insurance providers are expected to be more proactive in risk mitigation, offering value-added services such as predictive maintenance alerts and driver training modules.
4. Market Performance and Segment Dynamics
The Indian commercial vehicle industry experienced a marginal decline in retail sales in FY25. The total volumes dropped by 0.17% year-on-year (YoY) to 10,08,623 units from 10,10,324 units in FY24. Heavy commercial vehicles (HCVs) faced a 4.07% YoY decrease, while light commercial vehicles (LCVs) experienced a 0.21% increase, indicating a shift in demand patterns within the segment.
The first half of FY25 was marked by muted demand, especially due to the general elections and a slowdown in infrastructure activity. However, ICRA forecasts a 0-3% increase in wholesale volumes due to the resumption of construction and infrastructure projects and the need for replacements as fleets age. Supported by rural demand and the slow recovery of e-commerce and logistics services, the LCV segment is expected to lead this recovery.
5. Competitive Landscape and Market Share Shifts
The competitive dynamics among Indian CV manufacturers are undergoing realignment. Tata Motors remains the market leader but has seen its share drop from 35.42% in April 2024 to around 33.57% in April 2025. This reflects intensifying competition and the rise of new entrants.
Mahindra & Mahindra has strengthened its position, capturing over 23.24% of the market with a 1.72% YoY increase in April 2025 sales. While still a major player, Ashok Leyland experienced a 5.24% YoY decline in retail sales in the same period.
This shifting landscape prompts OEMs to diversify their product portfolios, focus on regional strengths, and invest in technology upgrades to maintain competitiveness. Adaptability and product mix are critical differentiators in a market characterised by evolving freight patterns and customer expectations.
Insurers like Digit Insurance are adapting fast, offering predictive claim tracking, zero paperwork processes, and real-time WhatsApp assistance. Their 2025 Transparency Report highlights above-industry claim settlement accuracy for entire motor line as 96%, reflecting growing trust among fleet operators.
Commercial Vehicle Outlook for 2025 and Beyond
The Indian commercial vehicle market is expected to grow modestly in the future, helped by replacement demand, rural consumption, and infrastructure development. Electrification is anticipated to pick up speed, especially in the LCV sector. Moreover, digitalisation and regulatory compliance will continue to drive investment in technology and insurance solutions.
OEMs will continue concentrating on innovation, flexibility, and customer-focused products to gain market share in a dynamic, competitive environment. In turn, insurance companies will be crucial in helping fleet operators by offering specialised commercial vehicle insurance products at affordable rates.
The Indian commercial vehicle market 2025 is characterised by cautious optimism, technological advancement, and strategic realignment. As the sector navigates the challenges of economic cycles, regulatory shifts, and evolving customer needs, the integration of electrification will be key to sustained growth and resilience.
Stakeholders who embrace these trends and invest in future-ready capabilities will be best positioned to thrive in the changing landscape.
(Disclaimer: The views, information or opinions expressed above are solely those of the individuals who booked this classified advertisement and do not represent those of Assam Tribune Digital Pvt. Ltd. and its employees.)