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India's automobile sector witnessed mixed demand trends during the first 14 days of the festive season, with the two-wheeler segment outperforming passenger vehicles despite a high base, reflecting a stronger demand outlook for two-wheelers, according to a report by Jefferies.
Auto registration data for first 14 days of festive shows a big divergence between 2Ws and PVs, Jefferies said. As per the report, the two-wheeler registrations rose 16 per cent year-on-year, while passenger vehicle registrations declined 6 per cent, indicating demand moderation in the passenger vehicle segment. Notably, In 1HFY27 (Apr-Sep), 2W registrations grew 22% YoY while wholesales rose 17% YoY, it said. On the other hand, demand for passenger vehicles (PVs) appeared to moderate in the second week of the festive season, after registrations recorded a healthy 7 per cent year-on-year growth in the first seven days. Notably, this comes after strong growth in the first half of FY27 (AprilSeptember), when passenger vehicle registrations and wholesale sales increased by over 25 per cent year-on-year. Demand momentum in PVs seems to have moderated in the second week as PV registrations were up a healthy 7% YoY in the first 7 days. In 1HFY27 (Apr-Sep), PV registrations and wholesales grew 28-29% YoY, it said. At the same time, truck and tractor registrations also recorded strong growth during the first 14 days of the festive season. Registrations surged 76 per cent year-on-year, partly supported by a low base, as registrations had declined 26 per cent during the corresponding period last year. Compared with 2024, truck registrations grew at a compound annual growth rate (CAGR) of 14 per cent during the first half of the festive period. Meanwhile, tractor registrations increased 21 per cent year-on-year, following an 18 per cent rise in the first half of the financial year 2026-27 (FY27). However, concerns remain over tractor demand in the second half of FY27 due to a high base and weak monsoon conditions. (ANI)
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