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ICRA Anticipates 3-5% Growth for Indian Commercial Vehicle Industry in FY26

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The Indian commercial vehicle (CV) sector is on track for moderate growth, with ICRA projecting a year-on-year (YoY) increase of 3-5% in wholesale volumes for Financial Year (FY) 2026. According to ICRA, this anticipated growth will be fueled by various factors, such as the revival of construction and infrastructure activities, stable demand from rural markets, and heightened replacement sales driven by aging vehicle fleets and government regulations.

Among the different segments of commercial vehicles, the Medium & Heavy Commercial Vehicles (M&HCV) category is expected to see a slight YoY volume increase of 0-3% in FY26, following a largely flat or slightly negative trend in FY25. Notably, this segment experienced a 7% YoY downturn in the first three quarters of FY25, with notable declines in tippers, haulage trucks, and tractor-trailers of 11% and 5%, respectively.

Meanwhile, Light Commercial Vehicles (LCVs) are anticipated to grow by 3-5% in FY26, bouncing back after a slight contraction in FY25, which was influenced by a high base effect and a slowdown in e-commerce alongside growing competition from electric three-wheelers.

The bus segment is expected to shine, projecting a YoY growth of 8-10% in FY26, following an 11-14% rise in FY25. This segment has also benefited from increasing adoption of electric vehicles (EVs), achieving a penetration rate of 5% in the same timeframe.

Diesel continues to dominate the CV market, holding an 88% market share in FY25 (year-to-date), though alternative fuels like compressed natural gas (CNG), liquefied natural gas (LNG), and EVs are gradually establishing a presence.

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ICRA remains optimistic about the industry’s financial stability, expecting operating profit margins (OPM) for original equipment manufacturers (OEMs) to remain steady at 11-12% in FY25 and FY26, aided by stable raw material prices, strategic price adjustments, and enhanced cost efficiencies.

Furthermore, capital expenditure within the CV industry is projected to rise significantly to ₹58-60 billion in FY25 and FY26, a substantial increase from ₹34 billion in FY24. Investments are likely to focus on product development, advancing alternative powertrain technologies, and overall technological improvements, as noted by ICRA.

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RBI Ends Special Dollar-Rupee Swap Window Early Amid Strong Demand

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Mumbai: The Reserve Bank of India (RBI) has decided to close its special forex swap facility for fresh FCNR deposits early.

The facility will now close on August 31, the RBI said on Friday.

The central bank said the decision was taken after receiving an encouraging response. The facility has attracted $52.3 billion through fresh foreign currency deposits.

Banks can continue to undertake swaps with the RBI against FCNR deposits raised under the facility until September 11.

Meanwhile, the schemes for External Commercial Borrowings and Overseas Foreign Currency Borrowings will remain open until December 31, 2026.

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The RBI launched the special US dollar-rupee forex swap facility on June 8. It allowed banks to raise fresh three-to-five-year FCNR deposits.

Banks could then swap these deposits with the RBI at a concessional rate. The facility effectively covered the entire hedging cost for banks.

The strong response to the scheme led the RBI to bring the facility to an early close.

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Leksa Lighting Technologies Named among India’s Top 100 MSMEs

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Moodbidri: A dream that began in the rural area of Niddodi in Moodbidri has now gained national recognition. Leksa Lighting Technologies Pvt. Ltd., founded by Ronald Sylvan D’Souza, has been recognised as one of India’s Top 100 MSME companies.

The prestigious national recognition was presented by the MSME Udyog Foundation at a ceremony held in New Delhi on August 8, 2026.

Ronald Sylvan D’Souza started his entrepreneurial journey from a humble background. Through hard work, discipline and continuous efforts, he built Leksa Lighting Technologies into a recognised lighting technology company.

The company has focused on quality, technological innovation and indigenous manufacturing. Research and development have also played an important role in its growth.

Leksa Lighting has adopted Japanese work practices to improve its manufacturing and operational standards. The company has also worked towards developing quality lighting solutions in India.

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What began as a dream in rural Karnataka has now reached different parts of the country. The company is also making its presence felt in international markets.

Speaking about the recognition, Ronald Sylvan D’Souza said the award was not an individual achievement. He credited the entire Leksa team, customers, business partners, family members and everyone who supported the company.

He said he was proud and happy to see a dream that began in Niddodi and Moodbidri receive recognition at the national level.

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The achievement highlights the potential of rural entrepreneurs. It also shows that determination, discipline and consistent hard work can help a business from a rural area achieve success on a national platform.

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Leksa Lighting Technologies’ journey stands as an example of how a local dream can grow into a nationally recognised enterprise.

 

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Vehicle Prices to Increase from August 1

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New Delhi: Buying a new vehicle is set to become more expensive from August 1, adding to the financial burden on consumers. Several automobile manufacturers have announced a price hike due to rising production costs.

The increase is mainly driven by higher prices of raw materials and components. The cost of steel, aluminium, rubber, plastic, electronic chips, batteries, and spare parts has gone up in recent months. Global market changes caused by ongoing conflicts and inflation have also increased manufacturing expenses.

As a result, vehicle companies have decided to raise the prices of new models. Customers planning to purchase a new vehicle are likely to pay more from August 1.

The price hike is also expected to affect the travel and transport industry. Travel agencies and tour operators say buying new cars, SUVs, and other passenger vehicles will become more expensive.

Operators have already been facing higher expenses due to increased fuel prices and toll charges. With the additional cost of new vehicles, many travel agencies are preparing to revise their rental charges.

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The Karnataka Travels Association has indicated that travel fares may be increased to manage the rising operating costs. Passengers may have to pay more for each trip if the revised rates are implemented.

Meanwhile, several automobile manufacturers have already published details of the upcoming price increase on their official websites. Consumers planning to buy a new vehicle may consider making their purchase before the revised prices come into effect on August 1.

 

 

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