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Rating agency Icra has said the commercial vehicle industry volume is expected to grow in the range of 7-10 per cent in the next financial year (FY24). It stated the volume growth would be on account of government infrastructure spending, replacement demand, back-to-school and office scenarios and e-commerce expansion.

It noted that the growth trends were visible in third quarter of the current fiscal, with wholesale dispatches reporting a growth of 16 per cent on a year-on-year basis, supported by replacement demand, improvement in the macroeconomic environment, and healthy traction in the underlying industries such as steel, cement, mining, automobiles, and e-commerce. It also noted freight rates continued to hold up, which, coupled with healthy freight availability, is supporting fleet operator viability.

Besides, it said the growth trends continued to be broad-based across all the three sub-segments - medium & heavy commercial vehicles (M&HCV), light commercial vehicles (LCV), and buses, in the third quarter and nine months ended December 31, 2022.