India's commercial vehicle (CV) retail sales reached 1,00,820 units in February 2026, a 28.89% increase compared to 78,219 units recorded in the same month a year earlier, according to data released by the Federation of Automobile Dealers Associations (FADA) on March 5, 2026. The result represents the highest-ever February retail volume for the CV segment, extending a broader trend of record-breaking performance across most vehicle categories during the month.

The overall auto retail market recorded 24,09,362 units in February 2026, up 25.62% year-on-year, with five out of six major vehicle categories posting their best-ever February figures. Commercial vehicles were among the strongest performers in this broader rally, contributing to what FADA described as a landmark month for the Indian auto retail sector.

The CV growth was recorded across both urban and rural markets. Urban CV retail rose 25.78% year-on-year, while rural markets expanded at a faster pace of 32.21% year-on-year, reflecting demand that extended well beyond metropolitan and industrial centres. On a month-on-month basis, however, total CV sales declined 6.20% from the 1,07,486 units registered in January 2026, a dip that analysts typically attribute to February being a shorter month.

Within the CV segment, the sub-category breakdown points to broad-based strength. Heavy Commercial Vehicles (HCV) retail stood at 35,127 units, up 34.74% year-on-year and 2.45% higher than January 2026, suggesting continued investment in long-haul freight capacity. Medium Commercial Vehicles (MCV) recorded 8,089 units, posting the strongest sequential growth within the segment at 5.77% month-on-month and a substantial 39.54% year-on-year increase. Light Commercial Vehicles (LCV), which include both passenger and goods variants, accounted for the bulk of sales with around 57,547 units, though they saw a 12.15% decline from January. On a year-on-year basis, LCV sales remained 24.39% higher than February 2025 levels.

Dealers across regions attributed the performance to a combination of demand-side and policy factors. Improved freight availability, steady growth in e-commerce activity, and infrastructure-linked demand were cited as primary drivers supporting fleet additions during the month. Additionally, the positive market sentiment following the GST 2.0 announcement helped improve secondary demand and encouraged bulk purchases by fleet operators. The policy revisions, which came into effect earlier in the fiscal year, are widely credited with improving affordability and boosting buyer confidence across vehicle segments.

Supply constraints for certain models were noted in some pockets, though FADA indicated that the overall pipeline of bookings and market movement remained encouraging. This supply-side friction, while not significant enough to dampen overall growth, is a factor that dealers flagged as one to watch in the months ahead.

On the manufacturer side, Tata Motors retained its position as the market leader in commercial vehicles, accounting for 35.61% of total CV retail in February 2026 with 35,900 units, up from a 34.75% share a year earlier. Mahindra & Mahindra held the second position with 27,014 units and a 26.79% share, marginally lower than its 27.06% share in February 2025.

Ashok Leyland came in third with 18,619 units and an 18.47% share, broadly in line with its year-ago position of 18.67%. VE Commercial Vehicles accounted for 8.20% of the market with 8,263 units, while Maruti Suzuki India held 4.45% with 4,489 units. Daimler India Commercial Vehicles recorded 2,389 units, representing a 2.37% market share, and Force Motors accounted for 2.08% with 2,097 units.

On the fuel-mix front, diesel continued to dominate CV sales, accounting for 83.50% of retail in February 2026, slightly higher than the 81.97% recorded in January 2026 and the 82.97% seen in February 2025. CNG and LPG-powered commercial vehicles accounted for 11.04%, while electric vehicles held a 2.03% share, with the remainder spread across petrol and other fuel types.

For the financial year to date, covering April 2025 to February 2026, cumulative CV retail stood at 9,57,853 units, an 11.34% increase from 8,60,318 units in the corresponding period of the previous financial year. This places CVs broadly in line with the overall market's year-to-date growth of 12.13%, suggesting the segment is sustaining consistent momentum rather than outperforming on a one-off basis.

Looking ahead to March 2026, FADA noted that CV demand is expected to remain supported by infrastructure activity, goods movement, and year-end business closures, as companies wrap up procurement and fleet expansion ahead of the end of the financial year. Strong pipeline bookings were also flagged as a positive indicator for near-term retail performance.

However, liquidity conditions and supply availability remain key factors to monitor. On a broader three-month outlook covering March to May 2026, dealer sentiment for CVs remains relatively steady, though expectations have become more measured compared to the sharper optimism seen earlier in the year, as the market transitions from a post-GST rebound phase to a more stable and calibrated growth trajectory.