Truck sales register single-digit growth in March, raising hopes of market recovery

Commercial vehicle manufacturers have posted growth in truck sales for March 2025 after a phase of subdued performance. This positive growth hints at a revival in the sector, which has faced headwinds and uncertainties in recent months.

Despite reporting a decline in overall truck volumes for FY25 due to a challenging demand scenario, commercial vehicle makers achieved single-digit growth in sales volumes for March.

CV makers remain optimistic about continued demand growth going forward, helped by factors such as increased fleet utilisation, financial support from rate cuts, lower crude oil prices, and a renewed focus on large-scale infrastructure projects.

Tata Motors, the leading truck manufacturer, recorded 6 per cent year-on-year growth in sales of intermediate, light, and medium commercial vehicles at 7,181 units. While passenger carriers posted a 4 per cent increase, reaching 6,088 units, heavy truck sales saw a modest 1 per cent rise to 12,856 units. However, the small commercial vehicle segment, including mini-trucks and pick-ups, declined by 17 per cent. “In Q4 FY25, the sustained year-on-year growth in sales volume over previous periods gained further traction. Both trucks and passenger carriers recorded healthy sales,” said Girish Wagh, Executive Director, Tata Motors Ltd.

Ashok Leyland Ltd, the second-largest medium and heavy commercial vehicles (M&HCV) maker, reported a 9 per cent increase in M&HCV truck sales, reaching 12,882 units in March. However, for FY25, its total M&HCV volumes dropped by 5 per cent to 93,540 units. Bus sales, on the other hand, surged 22 per cent to 3,200 units in March, aligning with the broader market trend.

Shenu Agarwal, MD & CEO, Ashok Leyland, said, “The M&HCV segment has demonstrated strong momentum in March, with both the bus and truck segments doing well. We believe this momentum will continue into the next year.”

VE Commercial Vehicles Ltd saw a 6.3 per cent increase in domestic sales of the Eicher brand of trucks and buses, reaching 11,187 units in March 2025. The company’s heavy-duty (≥18.5T) truck segment experienced a growth of 3.9%, with 3,079 units sold in March 2025. LMD bus sales also grew supported by demand for school and staff transport.

“The government’s focus on improving logistics efficiency, infrastructure investments, rising rural and consumer demand, and fleet modernisation continue to support the development of the CV industry. We expect this to continue going forward,” said Vinod Aggarwal, MD & CEO, VECV.

However, CV players remain cautious about how new regulations mandating truck cabin air-conditioning may affect vehicle prices