New Delhi, May 22 (IANS). India’s passenger vehicle segment is expected to show strong growth in FY27. The reasons for this are low GST rates, long wedding season in summer and high demand for new models. This information was given in the report released on Friday.
The report of rating agency ICRA said that due to the ongoing momentum in demand, the volume of the auto industry may increase by 4.6 percent in FY 27. However, growth will be slightly slower than last year due to the high base of FY26 and weak monsoon.
“Wholesale and retail sales of passenger vehicles in April recorded a strong growth compared to last year. Passenger demand continued to grow due to GST rate cuts, long summer wedding season and good demand for newly launched models,” the report said.
According to ICRA, wholesale sales of passenger vehicles in April rose 25 per cent to 44 lakh units over the previous year, as companies continued steady production to meet domestic demand. At the same time, during this period, a strong growth of 16 percent was recorded in retail sales on an annual basis.
The report said that retail sales have declined sequentially since March 2026 due to higher discounts given to increase year-end sales.
ICRA further said that according to the Federation of Automobile Dealers Associations (FADA), the inventory level was 50 days in April 2026 and 60 days in September 2025, which reduced to 28-30 days in April 2026 due to better offers in retail sales.
According to ICRA estimates, passenger vehicles exports grew by a healthy 13 per cent sequentially in April.
“This increase indicates increased supply by Indian OEMs,” the report said. ICRA expects wholesale sales to grow by 4-6 per cent in FY2027.
–IANS
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