Commercial vehicles form the backbone of global supply chains. In India, the commercial vehicle (CV) industry is at a transformative crossroads, evolving from traditional hardware-centric models to advanced, software-defined architectures. Central to this shift are Software-Defined Vehicles (SDVs) and Automotive Software-as-a-Service (SaaS), catalysing a move toward intelligent, connected, and highly productive mobility solutions. With the Indian CV market surpassing $50 billion in 2024 and witnessing robust growth due to expanding e-commerce, infrastructure projects and regulatory evolution. Indian original equipment manufacturers (OEMs) are spearheading this revolution. This paper presents a comprehensive analysis of the technological enablers, monetization strategies, distinct challenges and opportunities encountered by Indian OEMs during their shift toward SDVs and automotive SaaS based business models. This research also examines the most important technical pillars underpinning next-generation automotive ecosystem creation and these pillars are centralized computing infrastructures, embedded cloud integration, efficient over-the-air (OTA) update engines and enhanced cybersecurity models designed to protect larger numbers of connected vehicles are observed. This work explains, from a financial standpoint, the new and innovative methods in which OEMs and technology providers are leveraging SDVs and SaaS to generate new revenue streams. The prominent strategies being debated are Feature-on-Demand (FoD) services, subscription-based services based on different functionalities and features, the creation of dynamic in-vehicle app ecosystems, data monetization opportunities based on privacy regulations and flexible pay-per-use models. Additionally, the changing paradigm of Mobility-as-a-Service (MaaS) model is comprehensively analysed in terms of its impact on the industry of the future. Yet, this revolutionary process is plagued by a number of challenges. The paper offers a critical analysis of concerns like the necessity of achieving widespread customer acceptance of new service models, the complexities of complying with diverse data privacy regulations.