India's automobile industry is expected to maintain healthy demand across vehicle segments. However, the automakers are likely to face pressure on profit margins in the first half of the current financial year, projects Antique Stock Broking's monthly sector report. The report also stated that the profitability of the auto OEMs in India will improve in H2 FY27.The auto industry is expecting the growth momentum to continue in the H1 FY27, while the auto OEMs are likely to see pressure on profit margins.The brokerage said robust wholesale dispatches across passenger vehicles, commercial vehicles and tractors indicate that demand remains resilient, even as cost pressures are expected to weigh on OEMs in the near term. "OEM margins to remain under pressure in the near term, particularly during H1 FY27, before normalising in H2 FY27. Demand is expected to remain resilient in the premium segment, while the mass-market vehicle segment may witness moderation in H2 FY27. Also, export demand to regain growth momentum on the back of normalisation in geopolitical scenarios," the report stated.According to the report, domestic passenger vehicle wholesales rose 23% YoY (Year-on-Year) in the first quarter of FY27, while retail sales increased 22%. FADA has revealed that the passenger vehicle sales grew 22.64% in the Q1 FY27, with 12,55,933 units recorded, as compared to 10,24,101 units registered in the same period of the last fiscal.Domestic commercial vehicle and tractor wholesales also remained strong, growing 20% and 19%, respectively, during the last quarter. In June alone, domestic passenger vehicle wholesale dispatches increased 22% YoY, while commercial vehicle wholesales surged 30 per cent.Among passenger vehicle manufacturers, Tata Motors and Mahindra outperformed in June, posting YoY wholesale growth of 69% and 33.5%, respectively. Maruti Suzuki recorded 21% growth, while Hyundai reported a 10% decline after a fire at one of its suppliers' manufacturing facilities disrupted production. Toyota, MG and Kia also reported positive growth during the month.EV sales momentum to continueThe report also highlighted that the electric vehicle segment will see continued growth momentum. Retail sales of electric passenger vehicles rose 91% YoY in June, while electric two-wheeler sales increased around 68%. In the electric two-wheeler market, TVS held a 24% market share, followed by Bajaj Auto at 22% and Ather at 16%, while Ola Electric's market share declined to 8% from 19% a year earlier, as Vahan data has revealed.FADA echoes the same sentimentThe apex dealer body, Federation of Automobile Dealers Associations (FADA) echoed the same sentiment about the growth projection for H1 FY27. While revealing the retail figures of Q1 FY27 and June 2026, FADA has stated that for the next three months, dealers are confident of upbeat sales, with 66.17% of dealers expecting growth, the firmest medium-term reading in recent surveys, while only 3.98% expect de-growth. Notably, 38.31% of dealers have revised their FY27 retail outlook upward against just 16.42% downward, signalling conviction that the record-setting Q1 FY27, with the industry's 15.35% YoY growth, can carry into the festive season as well.Overall, the next three months appear optimistic for auto dealers and the industry, continuing the momentum of the strong Q1 FY27, amid the easing geopolitical and fuel-price uncertainty and broad policy continuity providing a supportive runway into the festive quarter.