New Delhi, April 4 -- India's passenger vehicle (PV) industry growth is expected to moderate to 4-6 per cent in FY2027, primarily due to a high base and evolving macroeconomic conditions, according to ICRA.

For FY2026, the industry is projected to record a stronger wholesale volume growth of 7-9 per cent, supported by festive demand, GST rate cuts, and multiple new model launches.

ICRA noted, "The industry continues to witness structural shifts, with utility vehicles accounting for nearly 67 per cent of overall sales, reflecting sustained premiumisation trends." At the same time, increasing adoption of alternative powertrains such as CNG and electric vehicles is helping diversify demand, PTI reported.

Capex to Continue Despite Moderati...