New Delhi, April 14 -- The Medium and Heavy Commercial Vehicle (MHCV) segment is expected to remain strong through FY27-28, according to a report by Yes Securities.

The report estimates a 6-8 per cent compound annual growth in volumes until total industry volumes (TIV) stabilise around FY31-32.

"MHCV cycle likely to stay strong over FY27/28; 6-8% vols CAGR likely before TIV stabilizes in FY31-32," the report noted.

Growth in the near to mid-term is likely to be driven by multiple factors. These include delayed vehicle replacements due to GST 2.0-related price changes and an ageing fleet. Around 42 per cent of vehicles are currently 8.5-10 years old, accounting for nearly 2 million units that may need replacement.

The report also highl...