February Auto Sales Show Mixed Results 🚗
In February, the auto sales figures are not as impressive as they seem. The retail sales in the auto sector saw a decline. While some companies in the passenger vehicle segment performed well, others did not fare as nicely. Additionally, two-wheeler sales dropped by 7 percent. 📉
Positive Outlook for Commercial Vehicles 🚛
Despite the challenges, a new report from ICRA brings some good news. It predicts an increase in wholesale volumes for commercial vehicles (CVs) in the upcoming financial year. Specifically, a growth of 3-5% in the wholesale sales of the CV industry is expected for FY 2025-26. This indicates a strong recovery in this segment. 📈
Factors Influencing Growth 🏗️
According to the ICRA report, the volume in the CV segment was flat in FY 25. The slowdown in demand was mainly due to the Lok Sabha elections. However, Kinjal Shah, Senior Vice President of ICRA, believes that the construction boom, stable rural demand, and high replacement sales will boost industry volumes by the end of FY 25. 🚧
Long-Term Development Prospects 📊
The report highlights that the long-term growth factors for the domestic CV industry include a rise in replacement demand. The recent budget allocation is expected to support future volume growth due to increased infrastructure development, mining activities, and improved road connectivity. 🛣️
Replacement Demand Remains Strong 🔄
Moreover, the demand for moderate and heavy commercial vehicles (M&HCV) remains robust, as many are around 10 years old. This trend is anticipated to help expand the industry in the medium term. While FY 25 saw a slight decline, M&HCV wholesale volumes could rise by over 3% in FY 26. 📦
Freight Rates Impacting Demand 💰
Finally, the increase in freight rates is likely to support industry demand. This positive development can help stabilize the market moving forward.
Follow DelhiBreakings on Google News
Superfast News Coverage by DelhiBreakings.com team.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com
