2 days ago
Auto Sector Eyes Up To 12% Growth In FY27
The group representing auto dealers expects car and vehicle sales to grow strongly this financial year.
It thinks growth could be between 9% and 12%.
Demand has been good since GST rates were cut last year.
People in rural areas are expected to buy more passenger vehicles than people in cities.
The group also expects all vehicle segments to perform well during the festival season.
Growth looked especially strong in the first six months because sales during the same period last year were low.
The industry will watch sales after September 22 this year carefully.
That period will show whether the strong growth can continue.
FADA expects India’s auto sector to record double-digit growth in FY27.
The dealers’ body projects full-year growth of about 9% to 12%.
CEO Saharsh Damani said demand has remained strong since last year’s GST rate cuts.
Rural passenger-vehicle demand is expected to outpace urban demand during the festive season.
Damani said growth after September 22 this year will be the industry’s key test.
- Who
- The Federation of Automobile Dealers Associations and its CEO, Saharsh Damani.
- What
- FADA forecast 9% to 12% growth for the automotive sector in FY27.
- Where
- The forecast concerns the automotive market, including rural and urban demand.
- When
- The outlook was published on August 31, 2026, for the financial year ending March 2027.
- Why
- FADA cited sustained demand after last year’s GST rate cuts, strong current traction, and a low comparison base from the previous year.
Key facts
- Forecast period
- Financial year ending March 2027
- Projected growth
- About 9% to 12%
- Demand trend
- Rural passenger-vehicle demand is expected to exceed urban demand
- Festive outlook
- All automotive segments are expected to outperform
- Demand driver
- Traction has continued since the GST rate cuts announced after September 22 last year
- Key test
- Performance after September 22, 2026, will be closely watched
- Comparison base
- The previous six-month period had a very low base
Quotes
Saharsh Damani
CEO of the Federation of Automobile Dealers Associations (FADA)
“The base for the last six months compared to six months of last year was very low, and therefore we have seen extremely good growth coming in during the first six months. Post 22 September last year, the GST 2.0 rate cut was announced, so we are keeping a close watch on how post 22nd September this year onwards the growth will look like, because that will be the actual litmus test for the industry.”
thehindubusinessline.com
“For the full financial year ending March 27, I think we'll have, we can aim for a double-digit growth, or maybe in a 9 to 11 or 12 per cent range. So that is the growth number what we are looking out for the full financial year.”
thehindubusinessline.com
Sources
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