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Rating agency ICRA in its latest report has said that the commercial vehicles (CV) wholesale volume may witness year-on-year growth of up to 3 per cent in current fiscal year. It had earlier estimated 4-7 per cent decline in CV volume for FY25.

It stated that the change in projection is due to better-than-expected volume growth in first four months of the current fiscal and expectations of a marginal uptick in demand in the second half of the year. It added FY25 will be the second consecutive year of muted growth for the CV segment after a 1 per cent and 3 per cent year-on-year growth in wholesale and retail sales, respectively last fiscal.

Moreover, it said the medium and heavy commercial vehicles (trucks) volume in FY25 is expected to grow 0-3 per cent YoY, given the high base effect and the impact of general elections on infrastructure activities in the first few months of the fiscal. It added domestic light commercial vehicles (trucks) wholesale volume is expected to show muted growth in FY25 due to a high base effect, sustained slowdown in e-commerce and cannibalisation from electric three-wheelers.