Infrastructure growth, logistics formalisation, connected vehicles and application-specific powertrains will reshape India’s commercial mobility landscape.
Mr. B Srinivas, MD & CEO, VE Commercial Vehicles, sees India’s commercial vehicle industry entering a strong phase of growth, supported by rising middle-class aspirations, infrastructure development, replacement demand and a more organised logistics ecosystem. Expressways, dedicated freight corridors and multimodal logistics parks are enabling freight to move faster and more efficiently, while GST e-way bills, FASTag and connected fleet systems are improving transparency and asset utilisation.
The September 2025 reduction in GST on commercial vehicles from 28% to 18% has also supported demand by lowering acquisition costs for operators. Over the next four years, productivity, environmental considerations and operating economics will increasingly influence buying decisions.
Powertrain adoption, he said, will remain application-led. Electric vehicles will gain ground in city, last-mile and bus applications, while CNG and LNG will suit selected fixed-route and long-haul operations. Advanced diesel will continue to play an important role in long-distance freight, while hydrogen will evolve through pilot deployments. Mandatory air-conditioned cabins for medium and heavy trucks will further strengthen driver comfort, safety and productivity.
“The future of powertrains will remain application-led, with different technologies finding their rightful uses across specific routes and applications.”
Connected Fleets and Customer Profitability
VECV recently crossed one lakh vehicle sales in FY26, with volumes spread across light and medium trucks, heavy trucks, buses and exports. Its 2030 strategy is to maintain leadership in light and medium-duty trucks while strengthening heavy-duty offerings through Volvo Group technology, including automated transmissions that will soon be manufactured at its upcoming Ujjain plant.
In urban logistics, the Eicher Pro X electric-first small commercial vehicle, co-created with logistics customers and offering best-in-class cargo space, addresses the growing e-commerce and quick-commerce opportunity. VECV will continue offering customers a choice of powertrains based on application.
In buses, Volvo Buses India will continue setting benchmarks in premium travel. Its established position as a “ticket brand” reflects passengers’ willingness to seek the Volvo experience, while Eicher Buses will expand across school, staff, intercity, tourism and electric applications. India’s relatively low bus penetration also presents significant growth potential.
Uptime remains central to VECV’s proposition. Every commercial vehicle sold is connected, supported by India’s first Uptime Centre and increasingly by AI and ML. “Our product evolution will focus on cleaner mobility, higher productivity and stronger customer profitability across the vehicle lifecycle.”
By 2030, VECV aims to drive commercial transportation modernisation across India and “India-like” markets in the Global South, making road transport safer, cleaner and more efficient.
The industry will measure us not by vehicles sold, but by kilometres delivered safely and economically.