Auto sector poised for up to 12% growth in FY27 on sustained demand: FADA

The Federation of Automobile Dealers Associations (FADA) has forecast that India's auto sector could achieve growth of up to 12% in fiscal year 2027, buoyed by sustained demand following GST rate reductions.

Strong consumer interest since the GST rate cuts and an improving market outlook have bolstered dealers' confidence for the remainder of the fiscal year, according to FADA's leadership. The combination of lower tax incidence and positive market sentiment is expected to drive robust vehicle sales across segments.