Commercial Vehicle Sales Volumes Likely To Degrow By 3-6% In FY25: CareEdge

CareEdge Research Report

Following muted growth in FY24, commercial vehicle sales volumes are expected to register a degrowth by 3-6% in FY25 due to a slowdown in demand in both the medium and heavy commercial vehicle and light commercial vehicle segments, as well as high inventory levels with dealers.

Demand is, however, likely to pick up some pace post-Q2 FY25 with the conclusion of general elections and a likely uptick in infrastructure projects post-monsoon. Replacement demand and mandatory scrapping of older government vehicles are expected to support volumes in FY25.

The muted growth in FY24 was mainly due to the high base of FY23, the transition to BS VI leading to higher vehicle costs and a slowdown in infrastructure projects amidst elections during the latter part of the year leading to higher inventory with dealers.

The commercial vehicle sector is expected to exhibit recovery in H2 FY25 due to anticipated GDP growth, ongoing infrastructure projects and potential interest rate cuts.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.