Passenger vehicle sales in India likely to moderate to 4-6% in FY27: Icra

India's passenger vehicle industry growth is expected to moderate to 4-6 per cent in FY27, largely due to the high base and evolving macroeconomic conditions, ratings agency ICRA said on Friday. For FY26, the industry is estimated to report wholesale volume growth of around 7-9 per cent, supported by strong festive demand, GST rate cuts and multiple new model launches, ICRA said in a statement. "The industry continues to witness structural shifts, with utility vehicles accounting for nearly 67 per cent of overall sales, reflecting sustained premiumisation trends," it said. Further, rising penetration of alternative powertrains such as CNG and electric vehicles is aiding demand diversification, ICRA said. Despite the anticipated moderation in growth, passenger vehicle original equipment manufacturers (OEMs) are expected to continue with significant capital expenditure towards new product development and electric vehicle platforms, while tractor manufacturers are likely to benefit fr

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