CV wholesale volume likely to grow up to 3 pc in FY25

New Delhi: According to a report by rating agency Icra, there may be a 3 per cent year-on-year increase in the wholesale volume of commercial vehicles (CV) in the current fiscal year. Icra had previously forecasted a decrease of 4-7 per cent in commercial vehicle volume for FY25.

Icra stated that the increase in forecast is a result of higher-than-anticipated volume growth in the first four months of the current fiscal year, along with the expectation of a slight increase in demand in the latter half of the year. It was mentioned that FY25 will mark the second year in a row of slow growth for the CV sector following a 1 per cent and 3 per cent increase in wholesale and retail sales, respectively, in the previous fiscal year.

Icra has stated that the volume of medium and heavy commercial vehicles (trucks) is predicted to increase by 0-3 percent year on year in FY25 due to the significant base effect and the general election's influence on infrastructure projects in the fiscal's initial months. Wholesale sales of domestic light commercial vehicles (trucks) are forecasted to exhibit slight growth in FY25, primarily influenced by a high base effect, continued e-commerce decline, and competition from electric three-wheelers.