The commercial vehicles wholesale volume may witness year-on-year growth of up to 3% in current fiscal year, rating agency ICRA said in a report on Monday.
ICRA had earlier estimated 4-7% decline in CV volume for financial year 2025.
The change in projection is due to better-than-expected volume growth in first four months of the current fiscal and expectations of a marginal uptick in demand in the second half of the year, ICRA said in a statement.
Fiscal 2025 will be the second consecutive year of muted growth for the CV segment after a 1% and 3% YoY growth in wholesale and retail sales, respectively last fiscal, it added.
The medium and heavy commercial vehicles volume in fiscal 2025 is expected to grow 0-3% YoY, given the high base effect and the impact of general elections on infrastructure activities in the first few months of the fiscal, ICRA said.
Domestic light commercial vehicles (trucks) wholesale volume is expected to show muted growth in Fiscal 2025 due to a high base effect, sustained slowdown in e-commerce and cannibalisation from electric three-wheelers, it added.
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