New Delhi, May 5 -- The ongoing demand upcycle in India's automobile industry is expected to continue for the next 2-3 quarters, with elevated growth likely to sustain through CY26 before gradually normalising in CY27, according to a report by Antique Stock Broking.

The report noted that the auto sector began FY27 on a strong footing, with broad-based volume growth across passenger vehicles (PVs), commercial vehicles (CVs), two-wheelers (2Ws), tractors, and electric vehicles (EVs). This growth has been supported by improving affordability following GST rationalisation, healthy rural sentiment, and ongoing premiumisation trends.

However, the report cautioned that escalating geopolitical tensions remain a key risk, particularly for export...