Two-wheeler registrations jump 23% in early festive period, outpace passenger vehicles: Report

The strong growth in two-wheelers comes despite a high comparison base following last year's Goods and Services Tax (GST) cuts, indicating sustained demand momentum in the segment during the crucial festive buying period.

In its equity research report, Jefferies said, "Auto registration data for the initial festive period shows strong demand momentum for 2Ws, trucks and tractors."

The brokerage compared vehicle registrations during October 1117, 2026, with the corresponding festive period of September 2228, 2025, to account for differences in the festive calendar.

"2W registrations in the first 7 days of festive are up a strong 23% YoY, despite the high base post the GST cut last year," the report stated.

Passenger vehicle registrations also recorded positive growth, but at a slower pace.

Jefferies noted, "PV registrations are also up 7% YoY, although lagging 2Ws on growth."

The difference comes after both segments recorded strong growth during the first half of FY27. Between April and September, two-wheeler registrations increased 22 per cent, while passenger vehicle registrations rose 2829 per cent.

The report also examined longer-term trends to assess whether the initial festive growth was driven primarily by last year's comparison base.

Compared with the corresponding festive period in 2024, two-wheeler registrations recorded a compound annual growth rate (CAGR) of 17 per cent over two years, against 10 per cent for passenger vehicles.

Meanwhile, truck registrations nearly doubled during the first seven days of the festive season, rising around 101 per cent year-on-year. However, Jefferies attributed part of the sharp increase to a weak base, as registrations had declined 32 per cent during the corresponding period last year.

Tractor registrations also grew 28 per cent year-on-year, compared with 18 per cent growth during AprilSeptember.

However, the brokerage cautioned that tractor demand could face pressure in the second half of FY27 due to a high comparison base and weak monsoon conditions.

The initial registration trends indicate a positive start to the festive season across major vehicle categories, although the sustainability of demand will become clearer as the month-long festive period progresses through November 11. (ANI)