ICRA expects the long-term growth drivers for the domestic CV industry to remain intact. The replacement demand would also remain healthy, primarily due to the ageing fleet, estimated at around 10 years for the medium & heavy commercial vehicles (M&HCVs) The scrapping of older government vehicles has been driving replacement demand for the bus segment from the state road transport undertakings (SRTUs). The same is expected to result in an 8-10 per cent YoY growth for the segment in FY2026, after an anticipated 11-14 per centYoY expansion in FY25, thereby surpassing the historic high volumes of FY2013, inFY2025. The segment witnessed a decline of 3 per cent on a YoY basis in the nine months of FY25,. on account of factors such as a high base effect, sustained slowdown in e-commerce and cannibalisation from electric three-wheelers (e3Ws). The segment reported an 7 per cent. YoY contraction in the April-December period of FY2025, with the tipper volumes contracting by 11. per cent, and the haulage and tractor-trailer sub-segments each declining by 5 per. cent.