New Delhi, September 28 (IANS): India’s commercial vehicle and passenger vehicle segments get a cautiously optimistic outlook for FY2026, with moderate growth expected in both segments amidst GST rate reductions, a report said on Sunday. ICRA forecasted a 1 to 4 per cent increase in passenger vehicle volumes for FY2026, driven by new model launches and policy relief. Light commercial vehicle retail sales increased by 8.2 per cent in August and 0.8 per cent growth sequentially. The medium and heavy commercial vehicle (M&HCV) sales saw a robust 9.2 per cent YoY increase, despite recent demand dampening by prolonged monsoons. Passenger vehicle sales declined in August compared to both the previous month and the same period last year, as buyers postponed purchases in anticipation of potential GST reductions, the report said.