look news india
Mumbai: Wholesale dispatch of commercial vehicles may see a decline of 4 to 7 percent in the current financial year. Apart from the high level of the previous financial year, the growth of commercial vehicle sales has slowed down due to the Lok Sabha elections.
The elections have also impacted infrastructure projects in the early months of FY25, impacting commercial vehicle sales as well, said an ICRA report.
The operating profit margin of commercial vehicle manufacturers is expected to decline to 8.50-9.50 per cent in the current fiscal as a result of lower sales.
Margins are being affected due to high competitive pricing pressure in addition to low volumes. Investments in the commercial aviation industry are expected to increase in the current financial year.
Capital expenditure is expected to be around Rs 59 billion, up from Rs 37 billion in the previous fiscal.
