Indian Economy News

Commercial vehicles likely to see 22% volume growth in FY23: Report

  • IBEF
  • November 25, 2022

According to CareEdge Ratings, the commercial vehicle (CV) industry is likely to post 20-22% volume growth in FY23, continuing the traction seen in the previous year. In FY22, the CV industry saw a 30.7% increase in volume. It grew by 60.2% YoY in the first half of FY23, while year-to-date (YTD) growth (April to October 2022) was 52.3% for the top five players.

According to the CareEdge Rating analysis, the industry's strong growth traction is being driven by an overall improvement in economic activities, rapidly growing infrastructure development with private and public capex, higher fleet utilisation levels, the thriving ecommerce sector, and a rebound in replacement demand. According to the rating agency, with strong tailwinds such as increased infrastructure spending and a continued boom in e-commerce, the CV industry will maintain its growth momentum in FY23, with volume growth of 20-22%.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.