Auto Demand Shows Mixed Festive Trends as Two-Wheeler Sales Gain, PV Demand Slows: Jefferies

New Delhi, Oct 26 (KNN) India's automobile sector recorded mixed demand trends during the first 14 days of the festive season, with two-wheelers outperforming passenger vehicles despite a high base, according to a report by Jefferies.

“Auto registration data for first 14 days of festive shows a big divergence between 2Ws and PVs,” the report said.

Two-wheeler registrations increased 16 per cent year-on-year (YoY) during the period, while passenger vehicle (PV) registrations declined 6 per cent, indicating a moderation in demand for the latter.

The report noted that two-wheeler registrations grew 22 per cent YoY during the first half of FY27 (April-September), while wholesale volumes increased 17 per cent YoY, ANI reported.

Passenger Vehicle Demand Moderates

The report highlighted that despite strong performance in the first half of FY27, passenger vehicle demand showed signs of moderation in the second week of the festive season. Registrations grew 7 per cent YoY during the first seven days, but the momentum weakened in the subsequent week.

“Demand momentum in PVs seems to have moderated in the second week as PV registrations were up a healthy 7 per cent YoY in the first 7 days. In 1HFY27 (Apr-Sep), PV registrations and wholesales grew 28-29 per cent YoY,” it said.

Truck and Tractor Registrations Rise

Truck and tractor registrations also recorded strong growth during the first 14 days of the festive season.

Truck registrations surged 76 per cent YoY, partly due to a favourable base, as registrations had declined 26 per cent during the corresponding period last year. Compared with 2024, truck registrations recorded 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 YoY, following an 18 per cent rise during the first half of FY27.

However, the outlook for tractor demand in the second half of FY27 remains uncertain due to a high base and weak monsoon conditions.

(KNN Bureau)