Domestic passenger vehicle sales projected to increase by 4-7% in FY26: Icra

India, Feb. 27 -- According to ratings agency ICRA, passenger vehicle sales in India are expected to grow at a moderate rate of 4-7% in FY26, with most demand factors remaining neutral or favorable.

For two-wheelers, ICRA projects industry volumes to expand at a healthy rate of 6-9% in FY26, following an estimated growth of 11-14% in FY25.

The passenger vehicle (PV) industry reached a record high of 4.2 million units in FY24. In year-to-date (YTD) FY25, wholesale volumes have remained steady, supported by consistent production from automobile manufacturers. However, industry growth has been modest at around 2%, influenced by declining replacement demand and high inventory levels, ICRA stated.

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