Mahindra Expects Light Commercial Vehicle Market to Rebound With Double-Digit Growth

After years of muted momentum in India’s light commercial vehicle (LCV) segment, Mahindra & Mahindra Ltd. expects the market to close the current fiscal year with growth in low double digits, in line with its earlier projections.

Rajesh Jejurikar, Executive Director and Chief Executive for the Auto and Farm Sectors at Mahindra, said the company began the year anticipating strong growth in the segment. “We had assumed the industry growth would be robust and in double digits,” Jejurikar noted. “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.”

His comments come as the LCV category, crucial for last-mile delivery and logistics, has remained largely stagnant for several quarters, reflecting a broader slowdown in small business freight movement.

Mahindra saw LCVs under 3.5 tons' volumes reach 69,600 units in the second quarter of fiscal 2026, up from 61,700 units a year earlier. Over the past two years, quarterly volumes have ranged between nearly 59,000 and 68,000 units, highlighting a gradual turnaround in demand. The company’s market share in the segment has expanded from 49.7% to 53.2% over the same period.

Company executives attributed part of the improvement to the impact of a government-mandated reduction in the Goods and Services Tax, which lowered ownership costs and spurred purchasing activity among small fleet operators and logistics firms.