Summary:

India's medium and heavy commercial vehicle (M&HCV) fleet is rapidly ageing, driving strong replacement demand as operators adopt newer, more efficient models equipped with advanced technology. Data from manufacturers and ICRA reveal that the average age of M&HCV vehicles has reached a 20-year high of 10 years. This is due to delayed purchases during the COVID-19 pandemic and recent sales declines. M&HCV volumes remained flat in FY24 and declined by 4% in FY25. Mandatory scrapping of government vehicles older than 15 years, effective April 2023, is expected to boost replacement demand.

Industry leaders are preparing for rising demand as fleet replacements accelerate, particularly in the M&HCV segment due to the ageing fleet. Since FY10, over 3.7 million trucks have been sold in India, including one million BS6 vehicles in the last four years. Nearly half of these vehicles are over 11 years old, indicating an urgent need for replacement. Improved roads and telematics enable modern vehicles to operate more efficiently, with replacement sales now accounting for 60% of M&HCV purchases.

Source: IBEF

Disclaimer:The information on this website comes from the India Brand Equity Foundation (IBEF), a reliable source for thorough insights into numerous areas of the Indian economy. While we aim to offer accurate and up-to-date information, the views, opinions, and analyses stated herein are solely those of the authors and contributors and do not necessarily represent IBEF's official stance or position. Readers should check information from credible sources and use their own discretion when relying on content provided on this site. We assume no responsibility or liability for the supplied content, including its accuracy, completeness, and usefulness.