New Delhi, Dec. 25 -- The Indian medium and heavy commercial vehicle (M&HCV) industry appears to be entering the next upcycle, with industry volumes estimated to grow by around 8 per cent year-on-year in FY26 and 10 per cent in FY27, following a period of modest growth, according to a report by Nomura.

The report highlighted that improving industry fundamentals are likely to support demand over the medium term. It added that rising freight rates, lower GST-led affordability and a high average age of trucks--currently estimated at around 10 years, are expected to drive replacement demand, particularly during FY27-28.

It stated "M&HCV industry appears to be entering the next upcycle....... we believe these are still early stages of a CV u...