India's commercial vehicle makers are diversifying into non-core businesses to mitigate risks from cyclical demand fluctuations tied to economic and infrastructure trends.
India's top commercial vehicle makers — Tata Motors, Ashok Leyland, and VECV — are scaling non-core revenue streams (spare parts, fleet services, financing), with Ashok Leyland's aftermarket alone at ₹3,800 crore and VECV's parts business growing 14% YoY in FY26. For tech and fleet managers, this signals a structural shift toward recurring, software-enabled revenue models (connected vehicles, fleet management platforms) that reduce OEM exposure to capex cycles and create new B2B service lock-in.
The move is aimed at shielding revenues and profits from cyclical nature of the market
Jun 01, 2026
01:22 pm
What's the storyIndia's commercial vehicle (CV) manufacturers are diversifying their business portfolios beyond truck sales.
The move is aimed at shielding revenues and profits from the cyclical nature of the market, which is heavily influenced by economic growth, freight activity, and government infrastructure spending.
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