CareEdge Ratings Predicts Decline in CV Sales for FY25
Despite the anticipated decline, CareEdge Ratings expects demand to recover post-Q2FY25, following the general elections and an uptick in infrastructure projects after the monsoon season. Replacement demand and mandatory scrapping of older government vehicles are projected to support volumes in FY25. The CV sector is expected to exhibit recovery in H2FY25 due to anticipated GDP growth, ongoing infrastructure projects, and potential interest rate cuts.
Arti Roy, Associate Director at CareEdge Ratings, stated, “The commercial vehicle (CV) industry is expected to experience sluggish growth, with overall sales volume likely to decline by around 3-6% in FY25. Several factors contribute to this, including general election-related disruptions, elevated vehicle costs, and high channel inventory levels. However, there is hope for improvement in the latter half of FY25 as infrastructure projects pick up pace post-monsoon and anticipated interest rate cuts provide some relief.”
