ICRA: Auto Industry Growth to Moderate to 3-6% in FY27 After Strong FY26

• Indian automotive industry's wholesale volume growth is projected to ease to 3-6% across segments in FY27, following elevated growth in H2 FY26.
• FY26 saw a mixed year with subdued H1 demand and strong H2 recovery due to policy measures, pent-up demand, and rural support.
• Passenger vehicle growth to moderate to 4-6% in FY27; utility vehicles and alternative powertrains continue to outperform.
• Two-wheeler industry to expand 3-5% in FY27; premiumization visible, but entry-level demand faces affordability pressure.
• Commercial vehicle segment projected to grow 4-6% in FY27, with LCVs and buses leading; EV transition expected to accelerate across segments by FY30.