Two-wheeler sales outperforming passenger vehicles this festive season: Report
What's the story
India's automobile sector has shown mixed demand trends in the first half of the festive season, a report by Jefferies said. The two-wheeler segment has outperformed passenger vehicles despite a high base, indicating a stronger demand outlook for two-wheelers. The report highlights that "auto registration data for first 14 days of festive shows a big divergence between 2Ws and PVs."
Market trends
Two-wheelers continue to dominate
According to the Jefferies report, two-wheeler registrations have increased by 16% year-on-year.
In contrast, passenger vehicle registrations have declined by 6%, signaling a moderation in demand for this segment.
The report also notes that "in 1HFY27 (Apr-Sep), 2W registrations grew 22% YoY while wholesales rose 17% YoY," further emphasizing the strong performance of two-wheelers during this period.
Demand shift
Passenger vehicles show moderation in demand
The demand for PVs seems to have moderated in the second week of the festive season.
This comes after a healthy 7% year-on-year growth in registrations during the first seven days.
The report highlights that "in 1HFY27 (Apr-Sep), PV registrations and wholesales grew 28-29% YoY," indicating strong growth during this period but a possible slowdown later on.
Sector performance
Trucks also perform well
Along with two-wheelers, the truck and tractor segments have also shown strong growth in the first 14 days of the festive season.
Registrations jumped by a whopping 76% year-on-year, partly due to a low base effect from last year's decline of 26%.
Compared to 2024, truck registrations grew at a compound annual growth rate (CAGR) of 14% during this period.