New Delhi, May 5 (BNP): India’s automobile sector is expected to maintain its growth momentum over the next two to three quarters, with strong demand likely to persist through calendar year 2026, according to a report by Antique Stock Broking.
The industry has entered FY27 on a positive note, recording healthy volume growth across segments such as passenger vehicles, commercial vehicles, two-wheelers, tractors, and electric vehicles. This broad-based expansion has been supported by improved affordability, upbeat rural demand, and a steady shift toward premium offerings.
The report suggests that favourable market conditions could continue to drive the sector in the near term. However, it also highlights potential risks on the horizon. Rising geopolitical tensions may affect export performance and profitability, particularly in the first half of FY27.
In addition, factors such as higher freight costs, increasing commodity prices, and possible supply chain disruptions could pose challenges, even as the overall outlook for the sector remains strong.
