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 has introduced factory-fitted air conditioning systems across its entire truck range, marking a significant upgrade for drivers in India. The new AC systems are now available in all cabin models, including the SFC, LPT, Ultra, Signa and Prima, as well as cowl models for the first time.

The advanced air conditioning system features dual-mode operation with Eco and Heavy settings, ensuring optimal cooling while improving energy efficiency. Alongside this comfort upgrade, Tata Motors has also enhanced the power output of its heavy trucks, tippers and prime movers, now delivering up to 320 hp. These trucks also incorporate intelligent fuel-saving technology to maximise efficiency, making them suitable for a wide range of applications.

Additional improvements include duty-cycle-based fuel efficiency features such as engine idle auto-shut and a voice messaging system that provides real-time alerts. These upgrades reflect Tata Motors’ commitment to setting new benchmarks in performance, driveability and driver comfort.

By offering factory-fitted AC across its entire range, including cowl models, Tata Motors is reinforcing its leadership in India’s commercial vehicle market while prioritizing both operational efficiency and driver well-being.

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TVS Motor Company has announced a leadership transition, with Sudarshan Venu set to take over as Chairman and Managing Director effective 25 August 2025. The Board of Directors unanimously approved his appointment in recognition of his significant contributions to the company’s growth and strategic direction during his tenure as Director.

Current Chairman Sir Ralf Speth has informed the Board that he will not seek re-appointment as a Director at the upcoming Annual General Meeting (AGM). As a result, he will step down as Chairman at the conclusion of the AGM on 22 August 2025. However, to ensure continuity and leverage his expertise, the Board has appointed Speth as Chief Mentor for a three-year term, effective 23 August 2025.

Venu Srinivasan, Chairman Emeritus, TVS Motor Company, said, "I express my sincere gratitude to Ralf for his exceptional leadership as Chairman over the last three years. His contributions have been invaluable in guiding our strategic expansion into global markets and fostering innovation that has significantly strengthened our industry standing. We are grateful for his continued support as Chief Mentor for TVS Motor and in welcoming Sudarshan into his new role. I am confident that Sudarshan, who, in his capacity as Managing Director, has demonstrated tremendous growth for the business, will take the Company to even greater heights.”

Sir Ralf Speth said, "It has been an honour for me to steer TVS Motor Company as its Chairman over the last three years. I am grateful for the support, cooperation and personal friendships developed during my tenure. As I hand over the Chairmanship to Sudarshan, I am confident that under his leadership, the Company will continue its growth journey while championing core TVS values. Sudarshan’s dynamism and passion underscore his vision for the business, and I am confident that TVS is in safe, responsible hands. I wish Sudarshan and TVS Motor a bright future ahead.”                               

Sudarshan Venu said, "I am very thankful to the Board for giving me this singular opportunity. I am really honoured and excited for the future and look forward to their continued support. TVS has been built on our Chairman Emeritus’s commitment to customer centricity, quality and technology. As we look to the future, we have to build on these values while capitalising on new opportunities and reimagining for the future. I am most grateful to him for his continued guidance. Sir Ralf has been instrumental in challenging and mentoring us to expand more globally, onboard international talent, embrace newer processes and invest in future products and technology. I look forward to his continued mentorship as our Chief Mentor. Importantly, TVS has grown due to the passion and energy of the entire team. I look forward to the continued partnership in our shared future.”

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Environment Day On the occasion of World Environment Day, VE Commercial Vehicles (VECV) has reaffirmed its commitment to sustainability -aligned with India’s Net Zero commitments. It has measurable strides towards reducing its environmental footprint. In this direction, it recently launched the first ever electric truck, the Eicher Pro X that is capable of zero tailpipe emission operation in mid and last-mile delivery segments. 
With electric buses in operation since 2022 in various states across India, VECV has pushed sustainability-led innovation in its Bhopal plant, inaugurated in 2020. This facility is India’s first commercial vehicle manufacturing unit built on Industry 4.0 principles that seamlessly blends digital intelligence, operator ergonomics and eco-conscious design. 
The integration of AI-powered, real-time energy monitoring systems further optimises consumption and boosts operational efficiency. The Eicher Pro X is built in this plant, which also has an all-woman final assembly line. 
Speaking about the company’s commitment to Net Zero, Vinod Aggarwal, MD and CEO, VECV, said, “In line with India’s Net Zero vision defined by Honourable Prime Minister Sh. Narendra Modi ji, VECV is committed to delivering future-ready mobility solutions—from electric, LNG and CNG trucks and buses to emerging technologies like hydrogen and fuel cells—as the market matures. Our investments in smart manufacturing, renewable energy, and responsible resource management reflect a holistic approach to sustainable growth. As we celebrate #WorldEnvironmentDay, let's work together to be the change we want to see!”
Aiming to achieve 70 percent renewable energy usage by FY27 and become water positive by 2030. VECV is focussing on improving our gender diversity, energy efficiency, waste reduction, Zero Waste to landfill, plantation and emissions control by executing impactful projects contributing significantly to the United Nations Sustainable Development Goals (SDGs) 6, 7, 12, and 13. 
A significant milestone in this journey has been by developing a water body with around 52 million litre capacity in its facility at Bhopal. The water body is sufficient to run the plant for four months. Similarly on the energy front, the company has transitioned to 100 percent LED lighting across all its facilities, replacing close to 5000 conventional lighting fixtures. This move has led to a substantial reduction in energy intensity – from 3.85 GJ/MINR in FY23 to 3.74 GJ/MINR of revenue in FY24. 

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Scania Commercial Vehicles India Pvt. Ltd. has announced strategic service agreements with leading finance facilitation companies to improve financing accessibility for its customers in the mining, infrastructure and transport sectors. 
These arrangements integrate financial solutions into the vehicle purchase journey, making Scania’s high-performance vehicles more accessible, accelerating solutions sales growth and reinforcing the company’s customer-first approach in India’s commercial vehicle industry.
Some of the service agreements include financial solutions providers like True Blue Asset Services Pvt. Ltd. (Hyderabad), CorpCare Investech Private Limited (Mumbai) and Connect Residuary Private Limited (Mumbai). 
Each of them brings extensive experience and a robust network of financial institutions, enabling Scania customers to access a wider range of financing options tailored to their operational and business needs. The collaborations ensure hassle-free loan processing with streamlined documentation and quicker approvals, minimising downtime.
 Customers of Scania India stand to benefit from simplified loan procedures and faster approvals. They can now access custom-built financial products such as structured EMIs, leasing models and flexible repayment terms, making them suitable in view of the price and TCO of Scania’s off-road and heavy-duty commercial vehicles.
 “Our customers operate in some of the most demanding sectors of the economy. Access to fast, flexible financing should never be a barrier to progress,” said Silvio Munhoz, Managing Director, Scania Commercial Vehicles India Pvt. Ltd. “By building strong financial partnerships, we are not just enabling vehicle purchases but empowering businesses to scale with confidence, backed by solutions that support their long-term growth,” he explained. 
Scania India sells heavy duty mining tippers in India with a GVW of 40-tonnes and even above to carry out tasks such as the transportation of overburden from deep inside the mine to outside it. The heavy-duty tippers are made at a greenfield facility on the outskirts of Bengaluru. 
 

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