New Delhi, May 22: The Indian passenger vehicle segment has witnessed strong volume growth driven by GST rate cuts, the extended summer wedding season, and healthy demand for newly launched models, despite concerns over a weak monsoon outlook and the ongoing West Asia crisis, a report showed on Friday.
ICRA expects passenger vehicle industry volumes to expand by 4.6 per cent in FY27, led by the likelihood of sustained demand momentum. The moderation in growth considers the elevated base of FY26 and the weak monsoon outlook. Wholesale and retail volumes of passenger vehicles grew at a strong pace in April on a YoY basis, with demand continuing to be supported by GST rate cuts, the extended summer wedding season and healthy demand for newly launched models. According to ICRA, wholesale volumes of passenger vehicles rose by 25 per cent year-on-year to 4.4 lakh units in April, as original equipment manufacturers (OEMs) continued steady production to cater to the robust domestic demand. On a sequential basis, wholesale dispatches remained steady.