At the 16th Apollo CV Awards 2025, Markets and Markets co-presented a whitepaper with Commercial Vehicle Magazine and Apollo Tyres. Ashish Bhatia summarises the growth opportunities and future trajectory of India, along with the commercial vehicle industry.
For the second edition in a row, Markets and Markets co-presented a whitepaper with Commercial Vehicle Magazine and Apollo Tyres at the 16Th Apollo CV Awards 2025. India’s Commercial Vehicle (CV) sector is undergoing a significant transformation, driven by rapid urbanisation, evolving regulatory frameworks, and technological advancements. The future of India’s mobility landscape hinges on how efficiently freight and people mobility systems adapt to these changes.
This whitepaper was presented by Keynote speaker Sarwant Singh, President & Chief Commercial Officer – EMEA, Markets and Markets. He explored the growth opportunities and future trajectory of CVs in India, highlighting key trends, challenges, and opportunities across various segments.
The Current State of India’s Commercial Vehicle Market
India’s commercial vehicle industry is the backbone of its logistics and transportation network, supporting freight movement and public mobility. As per the whitepaper data, the CV market witnessed a steady rise in demand, especially in the Medium and Heavy Commercial Vehicle (M&HCV) and Light Commercial Vehicle (LCV) segments. This growth is driven by infrastructure expansion, e-commerce proliferation, and the need for efficient last-mile delivery solutions.
Key Market Trends
The surge in freight demand, fueled by the expanding e-commerce sector and growing rural connectivity, is driving M&HCV sales. Increased urbanisation is propelling the need for efficient public transport solutions, boosting the Bus and People Mover segments. Additionally, telematics, fleet management systems, and driver assistance technologies are becoming standard features in CVs, enhancing operational efficiency and safety.
A Pivotal Growth Driver
Freight transportation accounts for a substantial portion of the CV market. The increasing demand for efficient logistics, driven by manufacturing growth and infrastructure projects, is accelerating M&HCV adoption. According to the whitepaper, the logistics sector’s push for digitisation, route optimisation, and fuel efficiency is compelling fleet operators to invest in modern CVs.
Key Factors Shaping Freight Mobility
The rise of e-commerce platforms is creating higher demand for LCVs and last-mile delivery vehicles. Simultaneously, road and highway expansion projects are boosting freight vehicle movement, making transportation more efficient. Fleet operators are prioritising fuel-efficient and alternate-fuel vehicles to reduce operational costs, aligning with sustainability goals and improving margins.
Transforming Public Transport
India’s growing urban population is placing increased pressure on public transport systems. The CV industry is responding by enhancing bus and people mover fleets with improved safety, comfort, and fuel efficiency features. According to the whitepaper, smart city initiatives are driving the demand for electric and CNG buses to reduce emissions.
Trends in People Mobility
The adoption of electric buses and smart mobility solutions is gaining momentum, especially in urban areas aiming to reduce pollution. Improved rural road networks are boosting the demand for people movers and mini-buses, enhancing rural connectivity. Additionally, state transport corporations are upgrading their fleets with fuel-efficient and eco-friendly vehicles, improving service quality and reducing operational costs.
The Rise of Alternate Fuels and Electrification
Sustainability concerns and regulatory pressures are driving the shift towards alternate fuels and Electric Vehicles (EVs). The whitepaper highlights the growing adoption of CNG, LNG, and electric CVs as fleet operators strive to reduce emissions and operating costs.
Alternate Fuel Trends
CNG and LNG vehicles are gaining popularity due to their lower fuel costs and reduced emissions, making them attractive for fleet operators. The adoption of electric buses and LCVs is rising in urban areas, supported by government incentives and lower maintenance costs. Hybrid solutions, combining conventional and electric powertrains, are also gaining traction, offering better efficiency and operational flexibility.
Technology and Digital Transformation in CVs
The Indian CV industry is embracing digitalisation to enhance fleet efficiency, safety, and customer experience. The whitepaper highlights the integration of telematics, real-time tracking, and predictive maintenance systems as key trends shaping the sector’s future. Telematics and fleet management systems enable real-time vehicle tracking and data analytic, optimising fleet operations and reducing downtime. Advanced Driver Assistance Systems (ADAS) are enhancing safety and driver comfort through features like collision avoidance and lane departure warnings. Additionally, the integration of CVs with cloud-based platforms for predictive maintenance is improving vehicle uptime and reducing repair costs.
The Future with Hydrogen
Hydrogen fuel cell vehicles (FCVs) can significantly reduce carbon footprints by emitting only water vapour, making them a viable option for specific commercial applications. However, Singh highlighted that hydrogen CVs are best suited for operating along routes where hydrogen infrastructure is present rather than for long-haul applications. This is due to the current limitations in refuelling network coverage. The refuelling infrastructure for hydrogen is expanding, albeit gradually, with pilot projects and collaborations between the government and private sector paving the way. Furthermore, hydrogen’s higher energy density offers superior range and faster refuelling compared to electric CVs, making it ideal for heavy-duty logistics and intercity transportation within supported corridors.
Challenges and Opportunities
While the CV industry offers significant growth potential, it also faces challenges such as fluctuating fuel prices, regulatory compliance, and supply chain disruptions. The whitepaper outlines several opportunities and strategies to overcome these hurdles. Rising fuel costs are impacting operational margins for fleet operators, making fuel efficiency a top priority. Stringent emission regulations are compelling fleet owners to upgrade to cleaner vehicles, which requires substantial investment. Additionally, a persistent driver shortage continues to affect fleet efficiency, posing a challenge for logistics companies.
Government initiatives promoting electric mobility and green transportation are creating new growth avenues for the CV industry. The increased adoption of AI and IoT in fleet management is enhancing efficiency, enabling predictive maintenance and reducing operational costs. Furthermore, the growing demand for CVs in rural and semi-urban areas is expanding the market, offering new business opportunities for manufacturers and fleet operators. The growth of freight and people mobility will be shaped by infrastructure investments, policy support, and technological innovations.
Transforming Freight and People Mobility
At the 16th Apollo CV Awards 2025, Markets and Markets co-presented a whitepaper with Commercial Vehicle Magazine and Apollo Tyres. Ashish Bhatia summarises the growth opportunities and future trajectory of India, along with the commercial vehicle industry.
For the second edition in a row, Markets and Markets co-presented a whitepaper with Commercial Vehicle Magazine and Apollo Tyres at the 16Th Apollo CV Awards 2025. India’s Commercial Vehicle (CV) sector is undergoing a significant transformation, driven by rapid urbanisation, evolving regulatory frameworks, and technological advancements. The future of India’s mobility landscape hinges on how efficiently freight and people mobility systems adapt to these changes. This whitepaper was presented by Keynote speaker Sarwant Singh, President & Chief Commercial Officer – EMEA, Markets and Markets. He explored the growth opportunities and future trajectory of CVs in India, highlighting key trends, challenges, and opportunities across various segments.
The Current State of India’s Commercial Vehicle Market
India’s commercial vehicle industry is the backbone of its logistics and transportation network, supporting freight movement and public mobility. As per the whitepaper data, the CV market witnessed a steady rise in demand, especially in the Medium and Heavy Commercial Vehicle (M&HCV) and Light Commercial Vehicle (LCV) segments. This growth is driven by infrastructure expansion, e-commerce proliferation, and the need for efficient last-mile delivery solutions.
Key Market Trends
The surge in freight demand, fueled by the expanding e-commerce sector and growing rural connectivity, is driving M&HCV sales. Increased urbanisation is propelling the need for efficient public transport solutions, boosting the Bus and People Mover segments. Additionally, telematics, fleet management systems, and driver assistance technologies are becoming standard features in CVs, enhancing operational efficiency and safety.
A Pivotal Growth Driver
Freight transportation accounts for a substantial portion of the CV market. The increasing demand for efficient logistics, driven by manufacturing growth and infrastructure projects, is accelerating M&HCV adoption. According to the whitepaper, the logistics sector’s push for digitisation, route optimisation, and fuel efficiency is compelling fleet operators to invest in modern CVs.
Key Factors Shaping Freight Mobility
The rise of e-commerce platforms is creating higher demand for LCVs and last-mile delivery vehicles. Simultaneously, road and highway expansion projects are boosting freight vehicle movement, making transportation more efficient. Fleet operators are prioritising fuel-efficient and alternate-fuel vehicles to reduce operational costs, aligning with sustainability goals and improving margins.
Transforming Public Transport
India’s growing urban population is placing increased pressure on public transport systems. The CV industry is responding by enhancing bus and people mover fleets with improved safety, comfort, and fuel efficiency features. According to the whitepaper, smart city initiatives are driving the demand for electric and CNG buses to reduce emissions.
Trends in People Mobility
The adoption of electric buses and smart mobility solutions is gaining momentum, especially in urban areas aiming to reduce pollution. Improved rural road networks are boosting the demand for people movers and mini-buses, enhancing rural connectivity. Additionally, state transport corporations are upgrading their fleets with fuel-efficient and eco-friendly vehicles, improving service quality and reducing operational costs.
The Rise of Alternate Fuels and Electrification
Sustainability concerns and regulatory pressures are driving the shift towards alternate fuels and Electric Vehicles (EVs). The whitepaper highlights the growing adoption of CNG, LNG, and electric CVs as fleet operators strive to reduce emissions and operating costs.
Alternate Fuel Trends
CNG and LNG vehicles are gaining popularity due to their lower fuel costs and reduced emissions, making them attractive for fleet operators. The adoption of electric buses and LCVs is rising in urban areas, supported by government incentives and lower maintenance costs. Hybrid solutions, combining conventional and electric powertrains, are also gaining traction, offering better efficiency and operational flexibility.
Technology and Digital Transformation in CVs
The Indian CV industry is embracing digitalisation to enhance fleet efficiency, safety, and customer experience. The whitepaper highlights the integration of telematics, real-time tracking, and predictive maintenance systems as key trends shaping the sector’s future. Telematics and fleet management systems enable real-time vehicle tracking and data analytic, optimising fleet operations and reducing downtime. Advanced Driver Assistance Systems (ADAS) are enhancing safety and driver comfort through features like collision avoidance and lane departure warnings. Additionally, the integration of CVs with cloud-based platforms for predictive maintenance is improving vehicle uptime and reducing repair costs.
The Future with Hydrogen
Hydrogen fuel cell vehicles (FCVs) can significantly reduce carbon footprints by emitting only water vapour, making them a viable option for specific commercial applications. However, Singh highlighted that hydrogen CVs are best suited for operating along routes where hydrogen infrastructure is present rather than for long-haul applications. This is due to the current limitations in refuelling network coverage. The refuelling infrastructure for hydrogen is expanding, albeit gradually, with pilot projects and collaborations between the government and private sector paving the way. Furthermore, hydrogen’s higher energy density offers superior range and faster refuelling compared to electric CVs, making it ideal for heavy-duty logistics and intercity transportation within supported corridors.
Challenges and Opportunities
While the CV industry offers significant growth potential, it also faces challenges such as fluctuating fuel prices, regulatory compliance, and supply chain disruptions. The whitepaper outlines several opportunities and strategies to overcome these hurdles. Rising fuel costs are impacting operational margins for fleet operators, making fuel efficiency a top priority. Stringent emission regulations are compelling fleet owners to upgrade to cleaner vehicles, which requires substantial investment. Additionally, a persistent driver shortage continues to affect fleet efficiency, posing a challenge for logistics companies.
Government initiatives promoting electric mobility and green transportation are creating new growth avenues for the CV industry. The increased adoption of AI and IoT in fleet management is enhancing efficiency, enabling predictive maintenance and reducing operational costs. Furthermore, the growing demand for CVs in rural and semi-urban areas is expanding the market, offering new business opportunities for manufacturers and fleet operators. The growth of freight and people mobility will be shaped by infrastructure investments, policy support, and technological innovations.
