India Automotive Industry Growth Moderates FY27
Analysis based on 9 articles · First reported Feb 17, 2026 · Last updated Feb 17, 2026
The Indian automotive market is expected to see a moderation in growth for FY2026-27 after a strong recovery in FY2025-26, as projected by ICRA and S&P Global===CRISIL. This outlook suggests a stable but less aggressive expansion, with a continued shift towards electric and alternative powertrains.
The Indian automotive industry is projected to experience a normalisation of wholesale volume growth in FY2026-27, with a moderate expansion of 3-6% across various segments. This follows a period of elevated growth in the latter half of FY2025-26, driven by post-GST reform factors, supportive rural demand, and policy-led stimulus. ICRA estimates domestic passenger vehicle volumes to grow by 4-6% YoY in FY2026-27, two-wheeler industry by 3-5%, and commercial vehicle volumes by 4-6%. S&P Global===CRISIL offers a more optimistic view for the two-wheeler segment, projecting 7-9% growth in FY2026-27. Key trends include the outperformance of utility vehicles, premiumization in two-wheelers, and a steady rise in alternative powertrain adoption, particularly electric vehicles, across all segments.
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