New Delhi, May 29 -- India's automotive sector is set for sustained growth trajectories over the next two fiscal years, with passenger vehicles and two-wheelers expected to outpace heavy commercial vehicles and tractors.

According to a research report by Nuvama, the domestic automobile industry will witness a divergence in growth momentum across different segments.

"Over FY26-28E, we forecast a domestic industry volume CAGR of 8% for PVs, 6% for 2Ws, 2% for MHCVs and 1% for tractors," the report said.

The near-term outlook for May 2026 indicates a broad-based sustaining of the wholesale uptrend, driven primarily by domestic demand factors.

"We reckon the wholesales uptrend shall sustain in May-26 led by better affordability, new produ...