New Delhi, Jan. 25 -- India's commercial vehicle industry is entering the early stages of a cyclical recovery, driven by improving fundamentals and supportive structural factors, according to a recent research report by Nomura.

The global brokerage firm said the commercial vehicle sector appears poised for an upcycle after several years of muted growth, with volumes expected to pick up over the next two to three years.

The India Medium and Heavy Commercial Vehicles (M&HCV) industry appears to be entering the next upcycle, and Nomura estimates volumes to grow 8-10 per cent year-on-year in 2025-26-2026-27 after a period of modest growth.

Rising freight rates, lower GST-led affordability, a high average age of trucks are likely to drive r...