India auto growth seen holding in 2026 as policy support meets rising costs
India’s automobile industry is set to enter 2026 on a firm footing, with sales expected to grow 6–8 per cent, supported by policy measures such as GST rationalisation, easier monetary conditions and income tax relief. After a record 2025, passenger vehicle demand rebounded strongly, led by SUVs, while CNG and electric vehicles continued to gain ground, pointing to a gradual shift in powertrains.