The Indian commercial vehicle (CV) sector rebounded significantly in FY26 after two years of sluggishness, achieving a growth rate of 10-11%. This recovery was primarily fueled by the reduction in the Goods and Services Tax (GST) from 28% to 18%, which improved purchase economics and unlocked deferred demand. Major players like Tata Motors reported a 12% increase in domestic CV sales, surpassing 4 lakh units, with the heavy truck segment experiencing substantial growth. However, the ongoing conflict in West Asia poses potential risks, including increased fuel costs and logistics expenses, which could impact fleet operator profitability and delay purchasing decisions. Despite these challenges, the underlying demand drivers, particularly in infrastructure and mining, remain robust, suggesting that the sector could continue to grow in the coming quarters as these external pressures stabilize.