New Delhi: Commercial vehicle sales are expected to decline by 3-6 per cent in the current financial year due to lack of demand, according to a report by CareAge Ratings.
The decline in sales volumes is due to a slowdown in demand in both the medium and heavy commercial and light commercial vehicle segments as well as high inventory levels with dealers, it said in a statement.
It said the slow growth in FY14 was mainly due to the high base of FY13, higher vehicle costs due to the transition to BS VI and a slowdown in infrastructure projects amid the elections during the latter half of the year. Due to high inventory.
“The commercial vehicle (CV) industry is expected to experience sluggish growth, with total sales volumes likely to decline by around 3-6 per cent in FY2025,” said Aarti Roy, Associate Director, CareAge Ratings.
He said several factors contributed to this, including general election-related disruptions, increased vehicle costs and high channel inventory levels.
"However, recovery is expected in the second half of FY2025 as infrastructure projects will pick up pace after the monsoon and the expected cut in interest rates will provide some relief," Roy said.
CareAge Ratings said replacement demand and mandatory scrapping of old government vehicles are also expected to support volumes in FY25.
The decline in sales volumes is due to a slowdown in demand in both the medium and heavy commercial and light commercial vehicle segments as well as high inventory levels with dealers, it said in a statement.
It said the slow growth in FY14 was mainly due to the high base of FY13, higher vehicle costs due to the transition to BS VI and a slowdown in infrastructure projects amid the elections during the latter half of the year. Due to high inventory.
“The commercial vehicle (CV) industry is expected to experience sluggish growth, with total sales volumes likely to decline by around 3-6 per cent in FY2025,” said Aarti Roy, Associate Director, CareAge Ratings.
He said several factors contributed to this, including general election-related disruptions, increased vehicle costs and high channel inventory levels.
"However, recovery is expected in the second half of FY2025 as infrastructure projects will pick up pace after the monsoon and the expected cut in interest rates will provide some relief," Roy said.
CareAge Ratings said replacement demand and mandatory scrapping of old government vehicles are also expected to support volumes in FY25.
