As India’s urban and rural landscapes evolve, so do the expectations from its commercial vehicles. The sector is undergoing a transformative shift, driven by the dual forces of sustainability and technological innovation. From smarter telematics to cleaner powertrains, the design and development of commercial vehicles are being reimagined to meet the demands of a dynamic market.

      India’s commercial vehicle market is poised for significant growth, projected to reach USD80 billion by 2033, expanding at a CAGR of over 5 per cent.1 This growth is not just quantitative – it reflects a qualitative leap in how vehicles are conceptualised, built and deployed. The industry is embracing a wide spectrum of emerging technologies, including electricity, hydrogen fuel and smart control systems, marking a decisive shift toward sustainability and efficiency.

      Innovative vehicle designs for performance and sustainability

      Modern commercial vehicles are now being designed with a focus on driver comfort, cargo optimisation, and brand-driven exterior styling. These elements are no longer secondary – they are central to the value proposition of new models. Additionally, standardisation strategies are helping manufacturers streamline production while maintaining high levels of customisation and performance.

      One of the most impactful innovations is the use of lightweight materials such as aluminium alloys and composites. These materials are enhancing fuel efficiency and extending vehicle range, particularly in long-haul and last-mile delivery segments. This not only reduces operational costs but also contributes to environmental sustainability.

      Besides, the integration of digital twins, model-based development and simulation-led engineering is revolutionising the way vehicles are designed and tested. These technologies allow manufacturers to create virtual prototypes, simulate real-world conditions and refine designs before physical production begins. The result is a significant improvement in time-to-market and product reliability, giving OEMs a competitive edge.

      The way forward

      Looking ahead, technology-led design and development can be the cornerstone of success for OEMs aiming to expand their footprint. The ability to balance production efficiency, cost-effectiveness, utility and user experience will potentially define market leaders in the coming decade. As the commercial vehicle industry continues to evolve, the convergence of sustainability, innovation and user-centric design will unlock new opportunities and reshape the future of mobility in India and beyond.

      [1] India commercial vehicle market size, share: Forecast 2033, IMARC Group, accessed on 22 September 2025

      Author

      Neeraj Bansal

      Partner and Head India Global

      KPMG in India

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