Commercial vehicles & tractors.

Commercial-vehicle (CV) and tractor manufacture are two cyclical capital-goods industries bought mostly by small businesses on credit, adding an estimated ₹0.6 lakh crore of value in FY26 (0.19% of national GVA) on gross output of about ₹2.6 lakh crore, with India the world's largest tractor market by volume (about a third of the global total) and the third-largest CV market. Three firms (Tata Motors, Ashok Leyland, VE Commercial Vehicles) make about 90% of medium and heavy trucks, while two families (Mahindra and TAFE) make 58% of tractors. The two segments track different parts of the economy - CVs follow industrial output, road construction and freight, while tractors follow the monsoon, minimum support prices and rural credit - and both cycle far more sharply than GDP: CV demand fell 29% in FY20 and a further 21% in FY21 while tractor demand rose 27% in FY21. The September-2025 GST cut and a normal monsoon made FY26 a strong year for both, with volumes near their previous peaks.

Estimated GVA

0.6 ₹ lakh crore · FY26

CV sales

~1.0 mn units · FY26

Tractor sales

~1.0 mn units (~0.12 mn exported) · FY26

Industry revenue (ex-factory)

~2.6 ₹ lakh crore (CV ₹1.7 LC + tractors ₹0.9 LC) · FY26

Listed market cap

~3.7 ₹ lakh crore (incl. one-third of M&M) · Jul-2026 spot

Listed PAT

~0.15 ₹ lakh crore · FY26

Exports

~2.2 US$ bn (~0.08 mn CVs, ~0.12 mn tractors) · FY26

Direct employment (OEM payroll incl. contract)

~0.10 mn · FY26