New Delhi:
The passenger vehicle (PV) industry in India is going to make a new record in FY 2026. During this period, domestic and export sales will cross 5 million units in total. However, the annual growth rate will slow down to 2-4 percent. This information has been given in a report by Crisil Ratings released on Friday.

Sale has crossed records for fourth consecutive year

The Crisil Ratings report states that this is the fourth consecutive year when the sales have reached a record level, but the sales have decreased significantly since the 25 percent increase in FY 2023 after the Corona epidemic. According to the report- Utility vehicle (UV) will promote increase in sales in this financial year, given new launch, reduction in interest rates, increase in adoption of CNG and favorable conditions in rural areas.

UV growth rate will be 10 percent

Anuj Sethi, senior director of Crisil Ratings, said, “The growth rate of PV in this financial year will be up to 2-4 percent, but the UV growth rate will be 10 percent, which has a new launch support. UV volume will contribute 68-70 percent of UV volumes. Reduction in better monsoon and interest rates is expected to improve rural areas, which will improve demand for entry level cars.”

Demand for PV running CNG increased

Vehicle manufacturers have strong cash flow and surplus cash, so that they will be able to complete their large investment easily. Their balance sheet will be strong and the credit profile will remain stable. Last year, 85% of the total sales was from the domestic market, the rest of the exports. Fuel mix is ​​also developing rapidly. The demand for PV running CNG is increasing. Their stake in this financial year is expected to reach 15 percent in this financial year due to low operating costs and over 7,000 refueling stations.

EV investment boom and localization promoted

The report suggested that, “existing geopolitical stress may affect the speed of exports, but OEMs may move to alternative markets like Mexico, Gulf countries, South Africa and East Asia.” Poonam Upadhyay, director of CRISIL Ratings, said, “PV Capex is expected to be at Rs 30,000 crore in this financial year, as OEMs are increasing capacity, EVs are accelerating and promoting localization and digital upgrade. However, it is the support of high capes, which is supported, which is supported by strong internal sources and cash untoward, in which the Capsax-Acquencies is the support Is stable. “

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(Tagstotranslate) PV Vehicle Industry (T) FY 2026 (T) Crisil Rating (T) Utility Vehicle (T) Anuj Sethi