New Delhi, April 25 -- India's commercial vehicle industry is set to reach a record 12.4 lakh units in fiscal 2027, surpassing the previous peak of FY19, but growth is expected to moderate to 5-6 per cent after a strong 13 per cent rebound in FY26, according to Crisil Ratings.

The industry's domestic recovery in FY26 was driven by multiple factors, including the GST rate cut from 28 per cent to 18 per cent in September 2025, which improved purchase economics and unlocked deferred demand. Easing interest rates, better freight utilisation and a pickup in infrastructure and mining activity also supported volumes.

Domestic demand is expected to remain supportive in FY27, backed by infrastructure-led activity, steady replacement demand and i...