India auto sector growth to slow in FY27 after FY26 surge
ICRA forecasts India's auto sector growth to slow to 3-6% in FY2027 after a robust FY2026. Commercial vehicle volumes jumped 23.8% YoY in February 2026, with capex projected at ₹32,000 cr.
after close1 source ↓written by the desknot a recommendation
- in FY2027
- 3-6%
- for FY2026 rose
- 12.5%
- expected to reach
- ₹32,000 cr
India’s automobile sector is projected to grow 3-6% in FY2027, down from a strong FY2026, as per ICRA. The slowdown is attributed to a high base effect despite sustained demand fundamentals.
- CV volumes surged 23.8% YoY in February 2026.
- Cumulative CV volumes for FY2026 rose 12.5%.
- Capex expected to reach ₹32,000 cr.
This moderation may impact investor sentiment in the sector.
Not investment advice. For informational purposes only.