Domestic passenger vehicle volumes to grow by 5% this fiscal: Tata Motors PV CEO

Passenger Vehicles CEO Shailesh Chandra estimates that India’s domestic passenger vehicle volumes will grow about 5% in FY26 as the industry recovers from a first-half decline of around 1.4%, buoyed by festive demand and recent GST cuts on cars. After softness in early FY26, sales growth turned positive with 5% and 17% jumps in September and October, driven primarily by better affordability and demand in the compact SUV segment—including record performance from models like the Nexon.​ Growth Drivers and Market Dynamics September and October's growth was underpinned by tax reductions, strong festive sales, and particularly robust expansion in smaller cities, where booking growth has even outpaced India’s top 100 urban centers.​ Compact SUVs and new product launches are expected to lead the industry, while the company plans to enter Q4 with lean inventories to target further retail acceleration.​ Outlook Industry leaders, including Maruti Suzuki, also anticipate stronger H2FY26 growth, projecting an overall rebound to about 5-6% annual volume expansion for the fiscal, with compact car and SUV categories expected to outperform as the effects of GST reforms and pent-up demand continue to filter through to year-end sales. Source: The Hindu No recommendations