Domestic Commercial Vehicle Industry Faces Decline Amid High Base and Weak Demand

Icra has projected a dip of 4-7% in the domestic commercial vehicle industry's wholesale volumes for the current fiscal year, attributing it to a high base from the previous year and weak demand. The sector's uptrend is expected to be arrested in FY2025 due to slowdowns in economic activities and the upcoming elections.

The domestic commercial vehicle industry is facing a projected dip in wholesale volumes of 4-7% for the current fiscal year, says Icra.

The rating agency attributes this to a high base from the previous year, weakened demand, and potential impacts from the Lok Sabha polls on infrastructure activities.

Volume declines in medium and heavy commercial vehicles are also anticipated due to similar factors, though long-term growth drivers remain strong.

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