Auto industry starts FY27 strong with passenger and two wheeler demand beating global uncertainty

Rural sentiment improving helped sales despite geopolitical noise

India’s automobile industry has kicked off FY27 with unexpectedly resilient momentum, even as geopolitical tensions and global economic worries linger in the background. Across segments, automakers are reporting healthy growth driven by solid consumer demand. Improved rural sentiment is playing an outsized role, while passenger vehicles and two-wheelers continue to gather steam. With these engines of demand accelerating at the start of the new fiscal year, the industry is leaning into early optimism for the months ahead.