ICRA estimates that the Indian two-wheeler industry will witness moderate wholesale volume growth of 3–5% in FY2027. While growth is expected to remain supported by improved affordability arising from GST rationalisation and replacement demand, the sector could face challenges from a high base effect, a potentially weak monsoon due to El Niño, and inflation-led vehicle price increases. […]
ICRA Limited expects the Indian Passenger Vehicle industry to witness 4–6% volume growth in FY2027, supported by sustained demand momentum, improving affordability following GST rate cuts, and continued traction in utility vehicles. The moderation growth in passenger vehicle wholesale volumes recorded a strong 27% year-on-year growth in May 2026, reaching 4.4 lakh units, while retail sales grew 33% YoY, […]
ICRA expects the revenue growth of the Indian auto component industry (represented by a sample of 46 auto ancillaries with aggregate annual revenues of over Rs 3,00,000 crore in FY2024, accounting for close to 50% of the industry) to ease to 7-9% in FY2025 and 8-10% in FY2026, from the highs of ~14% in FY2024. […]
Operating margins to expand by ~150-200 bps in FY 2024 with favourable product mix and stable movement in input prices ICRA pegs domestic tyre demand growth at 6-8% for FY 2024, supported by stable growth in the replacement segment and sustained demand momentum in the OEM segment. ICRA expects the demand momentum in the OEM […]
ICRA estimates that the average age of M&HCVs had increased to almost 10 years, while the average age of PVs had risen to 7.3 years in FY2022, the highest in the past two decades The aftermarket segment constitutes around a fifth of the overall demand and remains a vital cog in the Indian auto component […]