India passenger vehicle volumes forecast to rise 4.6% in FY27

ICRA expects India's passenger‑vehicle (PV) segment to expand by about 4.6% in the fiscal year 2027‑28. The outlook is supported by recent GST rate cuts, an extended summer wedding season and strong demand for newly launched models, despite a weak monsoon outlook and the ongoing West Asia crisis.

In April, wholesale PV dispatches jumped 25% year‑on‑year to 4.4 lakh units, while retail sales grew 16% YoY. Inventory levels remained low at roughly 28‑30 days, down from 50 days a year earlier. Export volumes rose 13% sequentially, indicating an increasing supply push from Indian OEMs.