FADA March 2025 CV Sales: Rural Drop Slows Overall Growth

FY 2025 Overview: The Commercial Vehicle (CV) sector in India ended FY’25 almost flat with a slight YoY decline of -0.17%, reflecting the sector’s continued struggle amid macroeconomic headwinds. The total CV sales stood at 10,08,623 units compared to 10,10,324 units in FY’24.

• Segment Breakdown:
  
  • LCVs (Light Commercial Vehicles): 5,63,189 units (+0.21%)
    
  • MCVs (Medium Commercial Vehicles): 77,568 units (+6.05%)
    
  • HCVs (Heavy Commercial Vehicles): 3,12,892 units (-4.07%)
    
  • Others (Construction Equipment & others): 54,974 units (+12.18%)

The decline in HCVs is notable, especially since this category traditionally serves as a strong indicator of freight movement and economic activity. This downturn is attributed to unpredictable weather patterns, financing bottlenecks, and volatile consumer sentiment—all of which deterred fresh purchases and slowed fleet upgrades.

March 2025 Performance

Despite the full-year plateau, March 2025 offered a brighter outlook, with the CV segment recording a 14.5% MoM growth and a 2.68% YoY increase, thanks to:

• High festival-driven demand (Gudi Padwa, Navratri, Eid)
  
• Increased school bus registrations
  
• Infrastructure-related project momentum
  

Dealers acknowledged this boost but raised red flags about OEM-imposed sales targets, which they found to be overly aggressive and disconnected from on-ground realities.

Urban vs Rural Dynamics

• Urban CV markets grew modestly at +0.55% YoY
  
• Rural regions declined by -0.90% YoY, pointing to strained logistics and weaker agri-economy connections
  

OEM Snapshot (FY’25)

• Tata Motors maintained leadership with a 33.46% share despite a YoY drop in volume.
  
• Mahindra & Mahindra rose to 25.52%, growing its footprint through smaller commercial formats and electric offerings.
  
• Ashok Leyland and VE Commercial Vehicles remained strong players at 16.6% and 7.53% market share, respectively.
  

EV Penetration in CVs: Still modest, increasing slightly from 0.8% to 0.9% YoY, suggesting a long road ahead for electrification in this heavy-duty space.

Conclusion

India's CV sector saw a flat FY25 with a slight 0.17% dip, though March 2025 showed a 2.68% YoY growth driven by festivals and infrastructure. Rural weakness contrasted with modest urban gains, and a notable HCV decline reflected economic challenges. While EV adoption remains slow, some OEMs like Mahindra & Mahindra showed growth. Overall, the sector faces ongoing headwinds despite positive short-term boosts.

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