India's PV Sales Growth to Moderate to 4-6% by FY27: ICRA Report

• India's passenger vehicle (PV) industry growth is projected to slow down to 4-6% by FY27, primarily due to a high base and evolving macroeconomic conditions.
• For FY26, wholesale volume growth is estimated at 7-9%, driven by strong festive demand, GST rate cuts, and new model launches.
• Utility vehicles now constitute nearly 67% of overall PV sales, indicating a sustained trend towards premiumization.
• Demand diversification is supported by the increasing adoption of alternative powertrains like CNG and electric vehicles.
• Tractor industry growth is also expected to moderate to 1-4% in FY27 after a sharp uptick in FY26, with monsoon performance and rural income levels being key factors.