Mumbai, June 16 -- India's medium and heavy commercial vehicle (M&HCV) industry is likely to witness a moderation in growth during FY27 after a strong performance in the previous fiscal, although easing fuel price uncertainty could provide support to fleet operators and vehicle demand, according to a report by Kotak Institutional Equities.

The brokerage expects domestic M&HCV industry growth to slow to low single digits in FY27, primarily due to a high base effect and normalization of demand that had been pulled forward earlier.

"We expect the domestic M&HCV industry growth to moderate to low-single digits in FY2027E after a strong FY2026," the report said.

Kotak believes a potential US-Iran agreement could help reduce crude oil and di...