New Delhi [India], March 28 : Vehicle sales growth in March 2025 is expected to remain positive for two-wheelers (2Ws) and passenger vehicles (PVs), while commercial vehicles (CVs) may see a marginal decline, according to a report by Nuvama.
The report stated that wholesale growth for March will be positive across the segments, while CV sales may witness a marginal dip. Tractors are expected to grow in double digits, supported by favourable customer sentiment and a low base from last year.
It said "We reckon Mar-25 wholesale growth to be positive in tractors, 2Ws and PVs, and decline marginally in CVs".
The report added that despite muted customer sentiment, the 2W and PV segments are anticipated to show low single-digit growth. This increase is largely driven by inventory build-up at dealerships ahead of the upcoming festival seasons like Gudi Padwa and Chaitra Navratri.
The report highlighted that the passenger vehicle industry's domestic volumes are likely to grow by around 3 per cent year-on-year (YoY). This growth is supported by higher discounts and price cuts announced by original equipment manufacturers (OEMs) to boost sales.
Similarly, two-wheeler sales in the domestic market are expected to rise by about 3 per cent (YoY), despite weak customer demand. A key factor supporting this growth is the pre-festive inventory stocking by dealers.
Additionally, exports of two-wheelers are projected to grow in double digits, driven by increased demand in Latin America and Africa.
On the other hand, the commercial vehicle segment is expected to see a slight decline of around 1 per cent (YoY) in domestic sales. While the E-Way Bill generation has been higher than last year, indicating improved freight availability, challenges like selective financing by lenders and stable fleet utilization levels are limiting the addition of new vehicles.
The report said "On the negative side, selective financing by lenders and reasonable levels of fleet utilisation are limiting new vehicle additions".
Overall, the report indicated a mixed trend in the automobile industry, with tractors, two-wheelers, and passenger vehicles showing resilience, while commercial vehicles face slight headwinds.
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