India’s Commercial Vehicle Market: April 2025 Trends

As a commercial vehicle enthusiast, digging into the latest FADA report for April 2025 is a great way to get a feel of the pulse of India’s commercial vehicle (CV) market, which includes trucks, buses, three-wheelers and tractors. While the overall auto retail market grew 3.0% year-on-year (YoY), the CV segment contracted. Let’s break it down.

Commercial Vehicles:

In April 2025, Commercial Vehicle (CV) segment declined 1.05% YoY and 4.44% month-on-month (MoM). This was due to OEM price hikes and stagnant freight rates which pulled down the sales. Also dealer feedback suggests that advance purchases in March led to high carryover stocks and holiday calendar dampened fresh inquiries and delayed conversions.

Segment wise Breakup in Commercial Vehicles:

• Light Commercial Vehicles (LCV): LCVs down 1.09% YoY and 10.75% MoM, 46,751 units in April 2025.
• Medium Commercial Vehicles (MCV): MCVs up 12.72% YoY and 6.08% MoM, 7,638 units.
• Heavy Commercial Vehicles (HCV): HCVs down 2.86% YoY, up 7.55% MoM, 31,657 units.
• Other Commercial Vehicles: This includes construction equipment vehicles, down 7.60% YoY and 21.50% MoM.
• Small Commercial Vehicles (SCV): SCV cargo segment was weak due to price and product gaps.
• Bus Segment: Bus segment was strong due to school transport and staff mobility.

Three-Wheelers: The Star of the Show:

Three-Wheelers was the star of the show, up 24.5% YoY and 0.39% MoM, 99,766 units in April 2025. This growth was more pronounced in the electric vehicle (EV) sub-segment of three-wheelers.

• Fuel-Wise Three-Wheeler Data (April 2025):
  • EVs led with 62.68% market share, up from 52.49% in April 2024.
  • CNG/LPG 25.92%.
  • Diesel 10.92%.
  • Petrol 0.48%.

Tractors: Robust Rural Demand:

Tractors were up 7.5% YoY, but down 17.70% MoM, 60,915 units. Strong Rabi harvest and above normal monsoon forecast is good for rural income and farm sector growth which are key drivers for tractor sales. Diesel continues to be the dominant fuel for tractors, 99.98% of the market share in April 2025.

OEM Performance in Commercial Vehicles (April 2025 YoY Comparison):

• Tata Motors Ltd: Maintained its lead with 33.57% market share (30,398 units), though slightly down from 35.42% in April 2024.
• Mahindra & Mahindra Limited: Increased its market share to 23.24% (21,043 units) from 22.60% in April 2024.
• Ashok Leyland Ltd: Had a market share of 17.41% (15,766 units), a slight decrease from 18.18%.
• VE Commercial Vehicles Ltd: Saw an increase in market share to 8.35% (7,565 units) from 7.57%.
• Force Motors Limited: Showed significant growth, increasing its market share to 3.66% (3,312 units) from 2.03%.
• Maruti Suzuki India Ltd: Held 3.53% market share (3,200 units).

OEM Performance in Three-Wheelers (April 2025 YoY Comparison):

• Bajaj Auto Ltd: Led the market with 32.71% market share (32,638 units).
• Piaggio Vehicles Pvt Ltd: Held 6.37% market share (6,355 units).
• Mahindra & Mahindra Limited: Showed notable growth, increasing its market share to 6.29% (6,278 units).
• Mahindra Last Mile Mobility Ltd: Also saw an increase in market share to 6.27% (6,260 units).

OEM Performance in Tractors (April 2025 YoY Comparison):

• Mahindra & Mahindra Limited (Tractor): Led with 23.05% market share (14,042 units).
• Mahindra & Mahindra Limited (Swaraj Division): Held 19.03% market share (11,593 units).
• International Tractors Limited: Accounted for 12.78% market share (7,782 units).
• TAFE Limited: Saw its market share increase to 11.23% (6,838 units).

Near-Term Outlook:

The near-term outlook for the commercial vehicle industry remains cautiously optimistic. While rural caution persists as spending outpaces incomes, the RBI's liquidity boost is expected to ease lending rates, potentially enhancing auto-loan affordability. For CVs specifically, demand is expected to remain flat amid competition from electric three-wheelers, although OEM schemes and forthcoming infrastructure projects may offer some relief. The industry will need to focus on disciplined inventory management and targeted incentives to sustain momentum.

Conclusion:

The April 2025 FADA report paints a mixed but resilient picture for the Indian commercial vehicle market. While the overall CV segment experienced a slight downturn, specific categories like three-wheelers, particularly EVs, and the bus segment demonstrated robust growth. The tractor segment is poised for continued strength driven by positive agricultural forecasts. As the industry navigates various headwinds and tailwinds, the emphasis on strategic adjustments and support for first-time buyers will be crucial for sustained growth in the dynamic Indian commercial vehicle landscape.