Mumbai, June 20 -- The Indian passenger vehicle industry is projected to achieve wholesale volume growth of 4-6 percent in FY2027, according to a sector update by credit rating agency ICRA.

Whilst the sector enters the upcoming financial year with demand momentum, the growth rate reflects a moderation compared to previous near-term spikes. The industry's baseline expansion continues to be supported by consumer demand, tax-driven affordability improvements, and a structural shift towards utility vehicles.

Data from May 2026 highlights near-term performance across manufacturing, wholesale allocations and retail customer handovers. Domestic wholesale volumes recorded a 27 percent YoY growth, reaching 440,000 units during the month.

Retail...