India auto sector growth to slow in FY27 after FY26 surge
India’s automobile sector is set to slow to 3-6% growth in FY2027 after a strong FY2026, driven by a high base effect. CV volumes surged 23.8% YoY in February 2026, with capex projected at ₹32,000 cr.
pre-market1 source ↓written by the desknot a recommendation
- in FY2027 following
- 3–6% growth
- in FY2026
- 12.5%
- expected to reach
- ₹32,000 cr
India’s automobile sector is projected to decelerate to 3–6% growth in FY2027 following a strong FY2026, as per ICRA. The slowdown is attributed to a high base effect despite sustained demand fundamentals.
Key Points:
• CV volumes surged 23.8% YoY in February 2026.
• Cumulative volumes rose 12.5% in FY2026.
• Capex expected to reach ₹32,000 cr.
This moderation may impact investor sentiment in the sector.
Not investment advice. For informational purposes only.