ICRA, one of the leading ratings agency, expects the domestic commercial vehicle industry’s wholesale volumes to witness a nominal YoY growth of 0-3 percent in FY2025, against the earlier estimated decline of 4-7 percent. This follows a better-than-expected volume growth in 4M FY2025 and expectations of a marginal uptick in demand in the second half of the fiscal. 

FY2025 will be the second consecutive year of muted growth after a 1 percent and 3 percent YoY growth in wholesale and retail sales, respectively, in FY2024.

Kinjal Shah, Senior Vice-President & Co-Group Head – Corporate Ratings, ICRA: “A range of factors such as the slowdown in infrastructure activities during the General Elections, as well as extreme heatwaves across the country, had some bearing on demand in Q1 FY2025. However, volumes in this period exceeded ICRA’s expectations. Looking ahead, ICRA expects a recovery in volumes in H2 FY2025 aided by a back-ended government capex, some pick-up in private capex across manufacturing sectors, and an improvement in rural demand, following visibility around the Kharif crop output and farm cash flows. The replacement demand would also remain healthy (primarily due to the ageing fleet) and is expected to support the industry volumes in the medium term.”

“The long-term growth drivers for the domestic CV industry remain intact, like the sustained push in infrastructure development (evidenced by retaining the higher infrastructure capital outlay in the July 2024 budgetary allocation), a steady increase in mining activities, and the improvement in roads/highway connectivity.”

ICRA states that medium and heavy commercial vehicles (M&HCV) (trucks) volumes in FY2025 are expected to report a nominal growth of 0-3 percent YoY, given the high base effect and the impact of the General Elections on infrastructure activities in the first few months of the fiscal. The segment had ended FY2024 with flattish volumes. Within this sub-segment, while the tipper volumes reported 4 percent YoY contraction in Q1 FY2025, the haulage sub-segment showed a modest 3 percent YoY growth for the quarter. Tractor-trailers reported a modest 7 percent YoY volume growth in Q1 FY2025.

Domestic light commercial vehicles (LCV) (trucks) wholesale volumes are expected to show a tepid YoY growth of -1 percent to 2 percent in FY2025 due to factors such as a high base effect, sustained slowdown in e-commerce and cannibalisation from electric three-wheelers. The segment had witnessed a mild decline of 3 percent on a YoY basis in FY2024, owing to the above factors, in addition to a deficit rainfall impacting the rural economy. Increased total cost of ownership of LCVs has also led to a rising preference for pre-owned vehicles by the small fleet operators, which may impact the demand, going forward.

The scrappage of older government vehicles is expected to drive replacement demand for the bus segment from state road transport undertakings (SRTUs) in FY2025, supporting a YoY growth of 8-11 percent. The sub-segment volumes gained considerable traction in FY2024 and exceeded the pre-covid levels.

In terms of powertrain mix, conventional fuels (primarily diesel) continue to dominate the domestic CV industry with a penetration of over 90 percent, while alternative fuels (CNG, LNG and electric) had driven around 9 percent sales in FY2024. Relatively higher penetration of electric vehicles (EVs) has been witnessed in buses (as e-buses were covered under FAME-II subsidies but not the other sub-segments), followed by LCV goods, with a penetration of 7 percent and 1 percent, respectively, in FY2024.

ICRA expects the operating profit margin (OPM) of the domestic CV original equipment manufacturers to remain range bound in FY2025 to 9.5 percent to 10.5 percent on the back of muted volumes and higher competitive pricing pressures, although factors such as cost improvement, favourable raw material costs and better product discipline are expected to lend some support to the profitability. 

The operating margins in FY2024 had improved by almost 300 bps to 10.7 percent supported by operating leverage benefits and better product mix. In addition, lower discounting and benign commodity prices aided in the margin expansion in FY2024. The capex and investments for the industry are likely to increase to around INR 56-58 billion in FY2025, against about INR 34 billion in FY2024. These will be mainly towards product development, especially in the areas of alternate powertrains, technology upgradation and maintenance-related activities.

“ICRA foresees the credit metrics of the industry to remain stable in FY2025 even as margins may contract marginally and capex outlay is anticipated to increase. The continued strong operating performance is expected to support the coverage metrics of the industry, with Total Debt / OPBITDA projected at 1.2-1.4 times as on March 31, 2025, against 1.5 times in as on 31 March, 2024 and interest coverage at 6.8-7.2x in FY2025, against 7.2 times in FY2024,” concluded Shah.

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Tata Motors Ltd has rolled out the one millionth commercial vehicle from its Lucknow facility, commemorating more than three-and-a-half decades of its presence in Uttar Pradesh and its contribution to industrial excellence, economic growth, skill development and sustained livelihood creation. 
At a time when India’s commercial vehicle industry is undergoing rapid transformation towards cleaner, smarter and more efficient mobility solutions, this milestone underscores Tata Motors’ leadership in shaping the future of mobility. The milestone vehicle, a zero-emission electric bus, highlighted the shared commitment of Uttar Pradesh and Tata Motors to green mobility, aligned with the state’s net-zero 2070 vision and the company’s net-zero target of 2045. It was flagged off by the Hon’ble Chief Minister of Uttar Pradesh, Yogi Adityanath, and N Chandrasekaran, Chairman, Tata Sons Ltd, in the presence of the Deputy Chief Minister Brajesh Pathak; Girish Wagh, Managing Director and Chief Executive Officer, Tata Motors Ltd, and eminent ministers as well as public representatives. Also present were senior bureaucrats, government officials and senior leaders from Tata Motors.
Speaking on the occasion, the Chief Minister said, “The rollout of 10 lakh trucks and buses from Tata Motors’ Lucknow facility is a moment of pride for the entire state. It is a recognition of the state’s capabilities and immense potential, as well as of its talented people. Our vision is to transform Uttar Pradesh into a one trillion-dollar economy, with industry and entrepreneurs playing a pivotal role in this journey. The state offers a conducive ecosystem for scalable businesses, supported by a vast consumer market, a young, skilled workforce and seamless connectivity.” “Tata Motors’ success in Uttar Pradesh reflects the strength of this ecosystem and reinforces our commitment to fostering responsible industrial growth, creating jobs, building skills and advancing sustainable socioeconomic development,” he added. 
Established in 1992, Tata Motors’ Lucknow facility has evolved into one of its most significant commercial vehicles manufacturing hubs, producing trucks and buses that meet global standards across multiple powertrains, including zero emission electric and fuel cell electric vehicles. Spread over 600 acres, the plant combines manufacturing scale with a strong focus on people and sustainability—supporting over 8,000 livelihoods, building industry relevant skills through flagship training programmes, and operating as a water positive facility powered by 100 percent renewable energy, underscoring Tata Motors’ commitment to inclusive growth and sustainability ingrained responsible industrialisation. 
The facility also supports a robust supplier ecosystem, enabling MSMEs and ancillary industries across Uttar Pradesh and beyond. Speaking on the occasion, Chandrasekaran averred, “The production of Tata Motors’ 10th lakh (one millionth) commercial vehicle from its Lucknow facility reflects the strength of our longstanding partnership with Uttar Pradesh. Over more than three decades, this collaboration has demonstrated how industry, government and communities can come together to drive industrial excellence, create livelihoods and build capabilities at scale. We are deeply grateful to the Hon’ble Chief Minister and the entire state for their continued support and for fostering a progressive, growth-oriented approach. As Uttar Pradesh accelerates its journey towards sustainable and inclusive growth, we remain firmly committed to contributing to its progress and to shaping a future ready mobility ecosystem.”
The landmark production milestone of 10 lakh (one million) vehicles underscores Tata Motors’ enduring commitment to Uttar Pradesh—anchored in manufacturing excellence, people-centric growth and responsible industrialisation. As the company advances its net zero journey, the Lucknow plant will continue to play a pivotal role in shaping a cleaner, smarter and more sustainable mobility future for India. It is the only Tata Motors’ plant that produces trucks and buses. Commercial vehicles above four tonnes and up to 55 tonnes are made at the plant on Dewa Road to the north of Lucknow city. 
The integrated facility produces around 65,000 vehicles and has a capacity to make a few lakh units per annum. It is structured such that trucks and bus chassis are made in one half of the plant. Bus bodies are built in the other half and sent to the other half to be married with the chassis. The ratio of buses and trucks produced is 25:75. The integrated facility also has a vendor park that houses Tata Group suppliers under Tata AutoComp. There are other vendors that have facilities in the vicinity of the plant as well. 

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Bajaj Auto has introduced its range of electric three-wheelers under the Bajaj WEGO brand. The portfolio includes multiple passenger and cargo variants, positioning it as a significant entry in the Indian electric three-wheeler segment.

The e-three-wheelers utilise an electric drivetrain featuring a two-speed auto transmission, a battery management system and regenerative braking technology.

The passenger line-up is divided into three categories based on range and application. The 50 Series (P5009, P5012) is intended for intra-city use, offering ARAI-certified ranges of 213km and 272km, with prices starting at INR 311,908. The 70 Series (P7009, P7012) is designed for shared urban commuting, providing ranges of 182km and 259km at prices from INR 323,001. The 90 Series (P9018) serves semi-urban and rural shared mobility requirements with a range of 296km, priced at INR 448,303.

For the logistics sector, the C9009 and C9012 cargo variants are built for last-mile delivery, offering ranges of 149km and 207km, with pricing starting at INR 387,371. Technical features across the range include hill hold, climb mode, Bluetooth connectivity and a digital LCD cluster. The vehicles are supported by a 5-year warranty and a service network of over 1,500 touchpoints.

Samardeep Subandh, President - Intra-City Business, Bajaj Auto, said, “With Bajaj Wego, we are launching the most comprehensive range of electric three-wheelers under a single brand. Each product is purpose-built to meet the distinct needs of diverse customer segments. The P50 series is optimised for high-frequency operations in congested urban environments, the P90 series is designed for longer distances and higher capacities and the C90 series delivers high range and loading ability for intra-city goods transport. Bajaj Wego is poised to play a transformative role in the three-wheeler segment by offering customers the right product for their specific needs.”

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Switch Mobility, the electric vehicle arm of the Hinduja Group, has completed the export of 100 electric buses to the Government of Mauritius. The final batch of 90 vehicles was handed over by India's External Affairs Minister, Dr S Jaishankar, to the Prime Minister of Mauritius, Dr Navinchandra Ramgoolam.

This marks the largest export of electric buses from India to date and was conducted as part of a government-to-government arrangement where the vehicles were provided as a donation from India to support the modernisation of public transport in Mauritius.

The e-buses were procured through a tender conducted by Convergence Energy Services (CESL) and are operated by the state-owned National Transport Corporation (NTC).

The fleet consists of the Switch EiV12 model, which features a seating capacity for 45 passengers. Technical specifications include floor-mounted lithium iron phosphate (LFP) batteries to maintain a low centre of gravity and a rear dual-gun charging interface designed to reduce turnaround times during depot operations.

The e-buses incorporate the Switch iON telematics system, which allows for real-time monitoring of vehicle health and fleet optimisation. This deployment is intended to assist Mauritius in reaching environmental goals by reducing urban emissions and improving the efficiency of its transit network. The project serves as a significant marker in Switch Mobility’s strategy to expand its manufacturing and export operations from India into international markets.

Ganesh Mani, CEO, Switch Mobility, said, "Mauritius is taking meaningful strides towards building a cleaner and more sustainable public transport system, and we are proud to be part of this journey. The completion of this 100-bus delivery marks an important milestone in strengthening the country’s transition to electric mobility, with tangible benefits for urban efficiency, environmental sustainability, and everyday commuter experience. As a global EV manufacturer building in India for the world, Switch Mobility remains committed to supporting Mauritius in shaping a greener, more resilient, and future-ready transport ecosystem."

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IVECO BUS has completed the delivery of 53 CROSSWAY Hybrid buses to Interbus Group, a Spanish passenger transport operator. The buses are destined for interurban routes in the Madrid and Andalusia regions, following the award of the ECO label for these transport corridors.

The majority of the new fleet will be integrated into the Madrid Regional Transport Consortium (CRTM) to support mobility within the capital's metropolitan area. The remaining units will be deployed in Andalusia to operate regional interurban services.

The delivery is part of a broader infrastructure renewal programme aimed at improving the environmental footprint and operational efficiency of Spanish public transport.

The CROSSWAY Hybrid model utilises a 48V mild-hybrid system. This architecture recovers energy during braking and provides motor assistance during start-up and acceleration. The system does not require external charging infrastructure, allowing for service continuity on long-distance routes.

Giorgio Zino, Head of IVECO BUS Commercial Operations in Europe, said, “The renewed confidence shown by Interbus demonstrates the strength of our partnership and our ability to provide concrete support to operators throughout their transition. In our sector, sustainability is truly meaningful when it delivers tangible benefits for operators while helping to improve air quality for citizens. This delivery confirms that IVECO BUS hybrid technology now represents a practical and effective solution to connect regions and ensure high-performance daily mobility”.

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