Eicher Motors' VECV Posts Marginal Growth in September Amid Mixed Commercial Vehicle Performance

VE Commercial Vehicles Limited (VECV), the joint venture between Volvo Group and Eicher Motors, reported total sales of 7,352 units in September 2025, marking a marginal 0.4% year-on-year growth compared to 7,322 units in the same month last year. However, the company's domestic performance remained subdued with sales declining 2.8% to 6,652 units from 6,847 units in September 2024, whilst exports provided the primary growth driver with a robust 47.4% surge to 700 units.

The mixed performance in September reflects the challenging operating environment faced by India's commercial vehicle sector, even as VECV maintained steady momentum in key international markets. For the fiscal year-to-date (April-September 2025), the company has achieved stronger overall growth of 7.8%, with total sales reaching 42,389 units compared to 39,336 units in the corresponding period of 2024.

In the domestic market, VECV's light and medium-duty (LMD) trucks segment, covering vehicles up to 18.5 tonnes, demonstrated resilience with 3,801 units sold in September 2025, reflecting a healthy 7.2% year-on-year increase. This segment has maintained consistent growth throughout the year, with year-to-date sales of 19,962 units representing a 10.2% improvement over the same period last year.

However, the heavy-duty trucks category above 18.5 tonnes experienced a decline, with domestic sales falling 4.3% to 1,955 units in September compared to 2,042 units in the previous year. The bus segment faced steeper challenges, with LMD bus sales dropping 27.3% to 801 units, while heavy-duty buses declined sharply by 39.5% to just 95 units.

VECV's international business emerged as the standout performer, with total exports jumping 47.4% to 700 units in September 2025 from 475 units in the same month last year. LMD truck exports grew 17.8% to 423 units, whilst heavy-duty truck exports surged dramatically by 276.7% to 113 units from just 30 units in September 2024. Bus exports also registered strong growth of 90.7%, reaching 164 units.

For the year-to-date period, exports have been a key growth catalyst, rising 40.4% to 3,259 units compared to 2,322 units in the first six months of the previous fiscal year.

When compared to the summer months of 2025, September's performance showed mixed trends. While specific figures for June, July, and August 2025 were not available in the company's September disclosure, VECV's year-to-date growth of 7.8% suggests the company has maintained relatively steady performance throughout the first half of the fiscal year.

The Volvo Trucks and Buses division, which operates alongside VECV, reported 267 units in September 2025, down 7.0% from 287 units in the previous year, contributing to total VECV sales inclusive of EVs reaching 7,619 units, up marginally by 0.1%.

In the broader context of India's commercial vehicle market, Eicher competes with established players including Tata Motors, Ashok Leyland, and Mahindra in various segments. While comprehensive September 2025 industry figures were not immediately available, recent market data suggests commercial vehicle demand has remained volatile due to factors including infrastructure spending patterns, rural demand fluctuations, and freight movement trends.

Bajaj Auto's commercial vehicle segment, primarily three-wheelers, reported strong growth in September 2025 with total CV sales rising 15% year-on-year to 79,651 units, though this covers a different market segment than VECV's focus on trucks and buses. 

VECV's performance in September 2025 reflects the company's strategic positioning in India's commercial vehicle market, where it has carved out a significant presence in the medium and heavy-duty truck segments through its partnership with Volvo. The strong export growth demonstrates the company's expanding global footprint, whilst the domestic market challenges mirror broader industry trends affected by economic conditions and infrastructure spending cycles.

The company's year-to-date growth of 7.8% positions it reasonably well compared to the overall commercial vehicle industry, which has experienced mixed demand patterns throughout 2025. However, the domestic sales decline of 2.8% in September highlights the need for continued focus on product positioning and market strategy in the home market.

As India's commercial vehicle sector continues to evolve with increasing focus on emissions compliance, fuel efficiency, and technological advancement, VECV's joint venture structure with Volvo provides potential advantages in terms of technology access and global market reach, factors that could prove crucial for sustained growth in the coming quarters.