Moody's pegs India car sales growth at 7% in 2026, 5% in 2027 after early-year surge
Moody's expects India light vehicle sales to grow 7% in 2026 and 5% in 2027, cooling from a 20% YoY jump in Jan-Apr 2026 fueled by GST cuts, rate cuts and tax relief. FY26 volumes seen at 4.7M units (+8% YoY). EVs still just 6% of PV sales versus a 30% target by 2030.
What happened
Indian passenger vehicle market · Moody's forecasts India light vehicle sales growth of 7% in 2026 and 5% in 2027, moderating from 20% YoY surge in early 2026
Key facts
- 7% growth 2026
- 5% growth 2027
- 20% YoY Jan-Apr 2026
- 4.7 million units FY26
- 8% YoY FY26
- EVs 6% of PV sales
- 30% EV target by 2030
Why this matters
The 24-point growth deceleration from Q1 2026 to 2027 creates a window to acquire stretched dealer networks or EV-capability assets before the 2030 mix shift forces consolidation.