- Passenger vehicle sales expected to grow 4-6% this fiscal year
- Wholesale volumes grew 27% and retail sales rose 33% last fiscal
- Utility vehicles made up 68% of passenger vehicle sales in FY2026
Passenger vehicle sales are likely to grow 4-6% this fiscal, driven by sustained demand momentum, improving affordability following GST rate cuts, and traction in utility vehicles, a report said.
Passenger vehicle wholesale volumes recorded a strong 27% year-on-year growth in the last fiscal, reaching 4.4 lakh units, while retail sales grew 33% on the back of robust consumer demand, newly launched models, and an extended summer wedding season, according to the report by ratings agency Icra.
However, the agency said that rising fuel and commodity prices, along with concerns around a weak monsoon, remain key factors to watch.
According to ICRA, utility vehicles continued to dominate the segment, accounting for nearly 68% of overall passenger vehicle sales in FY2026, while demand recovery was also visible across mini and compact car categories following GST rate cuts in September last year.
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Exports remained healthy, rising 13% annually in May this year, reflecting an increasing supply push by Indian automakers in global markets.
At the same time, electric vehicle adoption also strengthened, with EV penetration in the passenger vehicle segment rising to nearly 6% in early FY2027, it said.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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