Icra Predicts Modest Growth for Commercial Vehicles in FY25

A report from Icra anticipates up to a 3% growth in commercial vehicles (CV) wholesale volume for the current fiscal year. This revision stems from unexpectedly strong sales in the year's initial months and an optimistic demand outlook for the second half of the year.

Icra reports potential 3% growth in commercial vehicles (CV) wholesale volume for the current fiscal year. This revision follows an unexpectedly strong start and an anticipated slight uptick in demand later in the year.

Initially, Icra had projected a 4-7% decline in CV volume for FY25. This new prediction marks the second consecutive year of modest growth after last year's 1% and 3% increases in wholesale and retail sales, respectively.

Moderate growth is expected for medium and heavy commercial vehicles, with a projected 0-3% increase, influenced by the high base effect and upcoming general elections impacting infrastructure activities. Meanwhile, light commercial vehicles are expected to see muted growth due to high base effects, a slowdown in e-commerce, and competition from electric three-wheelers.

(With inputs from agencies.)