Loading article...
India's passenger vehicle makers are entering FY27 with a stronger growth outlook than two-wheeler manufacturers, driven by new model launches, production capacity expansion, and sustained demand for utility vehicles. Most passenger vehicle companies are targeting double-digit growth this fiscal year, supported by these factors.
According to Jay Kale of Elara Securities, the demand momentum holding up in double digits growth YoY in 1HFY27 is necessary for the full year growth estimates of 6-8% for the PV and 2W industry to be met.
Among passenger vehicle manufacturers, Maruti Suzuki India has guided for around 10% domestic growth in FY27, while Mahindra & Mahindra has projected 15-18% growth in its utility vehicle business this fiscal.
The tone from two-wheeler companies has been relatively restrained, with Hero MotoCorp expecting industry growth in high single digits in FY27, and Bajaj Auto seeing motorcycle industry growth of around 7-9% in the near term.
Looking ahead, the industry will be watching the impact of potential fuel price increases on demand, as well as companies' ability to guard their margins owing to commodity increases. The court will not be involved in this matter, but the industry will be keenly watching the developments in the coming months.