Hello readers, I hope you all are very well.
In the first quarter of FY25, the commercial vehicle (CV) sales, have fared reasonably well, especially in the medium and heavy commercial vehicle (M&HCV) and bus segments.
The top four players — Tata Motors, Mahindra & Mahindra, Ashok Leyland, and Volvo Eicher Commercial Vehicles (VECV) — together sold over 150,454 units of medium to heavy trucks and buses between April and June 2024, registering a 7.2 per cent growth.
Tata Motors’ CV domestic sales at 87,615 units in Q1FY25 were around 7 per cent higher than Q1 of 2023-24 (FY24) sales. Their sales in June 2024 were 3 per cent higher compared to May 2024.
While demand for heavy CV’s remain well, the market sentiment for medium CV segment remained positive due to demand increasing in -
🚛 E-commerce
🚛 Automotive aggregates
🚛 Liquified petroleum gas segments
The CV passenger business continues its robust post-pandemic recovery, with school and staff transportation segments growing 39 per cent during the quarter.
Tata Motors’ intermediate, light, and medium CV sales also grew 34 per cent during Q1FY25.
Sales of small and light CVs for Tata Motors declined by 6 per cent in Q1FY25 compared to Q1FY24, primarily due to financing challenges faced by first-time users in this category.
The industry considers the following reasons will improve the demand for CVs -
👉 Healthy monsoon
👉 Expectations of policy continuity
👉 And a thrust on infrastructure-related developmental projects by the government
Data from the Federation of Automobile Dealers Associations showed that between April and June 2024, retail sales of all kinds of CVs ended flat at 246,549 units compared to 244,834 units in 2023. The industry expects demand to slow down some what during the second quarter (Q2) before picking up in the second half (H2) of the financial year.
As the commercial vehicle sector navigates through Q1FY25 with robust performances in the medium and heavy commercial vehicle segments, supported by a resurgence in CV passenger business and optimistic market sentiments, the industry anticipates further growth. With favorable factors such as a promising monsoon, policy stability, and government-led infrastructure projects, the outlook remains positive despite expected seasonal fluctuations. As we move forward into Q2, stakeholders are poised for a dynamic recovery in the latter half of the fiscal year.
#CommercialVehicles #AutomotiveIndustry #BusinessNews #EconomicUpdate #TransportationSector #InfrastructureProjects #MarketAnalysis #VehicleSales #IndustryTrends #LinkedInBusiness #CorporateUpdates #FinanceNews #EconomicGrowth #FiscalYear2025 #BusinessDevelopment
Business Development
1wGreat M. MURUGAN Insurance Advisor Life Insurance Corporation of india (Life Insurance) The New India Assurance Co. Ltd ( General Insurance ) https://www.linkedin.com/posts/murugan-m-5a23658a_hello-everyone-namaste-i-am-murugan-activity-7218637371553026048-AYmQ?utm_source=share&utm_medium=member_android