India's PV volume to cruise past 5 million in FY26 despite slow growth

As volume growth slows, original equipment manufacturers (OEMs) will rely on premiumisation and better product mix to protect margins

India’s passenger vehicle (PV) industry is set to scale a fresh high this financial year with the cumulative domestic and export volume crossing 5 million units even as annual growth slows to 2-4 per cent, according to a Crisil Ratings report published on Friday.

 

PV capital expenditure (capex) is expected to stay elevated at ₹30,000 crore this financial year as original equipment manufacturers (OEMs) ramp up capacity, accelerate electric vehicle (EV) investments, and push localisation, and digital upgrades.

 

This is the fourth consecutive year of record sales, although momentum has significantly eased from the 25 per cent surge in 2022-23