Passenger vehicle growth set to slow to 4 to 6 percent in FY27 amid macro risks

Published on 27 April 2026

ICRA warns growth cools fast on a high base

ICRA expects India’s passenger vehicle growth to moderate to 4–6% in FY27 after a strong FY26, citing a high base alongside macro risks and a potentially weak monsoon. Demand is still expected to hold up due to GST-related support and fresh vehicle launches. Utility vehicles are forecast to keep leading sales, while exports have risen meaningfully.

ICRA projects passenger vehicle growth slowing to 4–6% in FY27
Weak monsoon and global macro risks are key watchpoints
GST rate cuts and new launches should cushion demand
UVs lead sales and exports show strong momentum

#india auto #uv demand #gst cuts #passenger vehicles #icra

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Passenger vehicle growth set to slow to 4 to 6 percent in FY27 amid macro risks

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