New Delhi, April 27 -- Growth in India's passenger vehicle (PV) industry is expected to moderate to 4-6 per cent in FY2027 from 8.6 per cent in FY2026, mainly due to a high base and emerging macroeconomic risks, even as demand remains steady, according to a report by ICRA.

The report said factors such as a weak monsoon outlook and the ongoing West Asia crisis, which could impact inflation and consumer sentiment, will be key monitorables for the sector.

ICRA said demand is likely to remain supported by GST rate cuts and new model launches by original equipment manufacturers (OEMs), which will partly offset the impact of the elevated base.

The report noted that wholesale volumes rose 16 per cent year-on-year to 4.4 lakh units in March 20...