South India Outpaces North Across Major Auto Segments In Q1FY27, Led by Strong Demand: Kotak Report

New Delhi, Aug 26 (KNN) South India outperformed the Northern region across all major automobile segments in the first quarter of FY27, with broad-based demand growth supported by GST revisions and regional consumption patterns, according to a Kotak Institutional Equities report.

The report identified three key trends: strong demand across segments and regions following GST cuts, relatively stronger performance in the South and weaker growth in the North, and a continued shift towards scooters driven by electrification, ANI reported.

Passenger Vehicles, Two-Wheelers See Strong Growth

Passenger vehicle volumes rose 25 per cent year-on-year (YoY) in Q1FY27. Southern and Eastern markets recorded growth of 35 per cent and 29 per cent, respectively, while Northern volumes increased 20 per cent. Madhya Pradesh, Delhi and Haryana recorded growth of less than 20 per cent.

Two-wheeler volumes increased 20 per cent YoY, with Southern India leading with 34 per cent growth. Kerala and Tamil Nadu recorded growth of more than 40 per cent. Eastern and Western markets grew 21 per cent and 17 per cent, respectively.

The shift towards scooters also accelerated, with their share of two-wheeler volumes rising 310 basis points YoY to 56.5 per cent in South India. The Western region recorded a 220-basis-point increase in scooter mix.

Commercial Vehicle Demand Remains Strong

Commercial vehicle volumes increased 14-21 per cent YoY during the quarter. Medium and heavy commercial vehicle (M&HCV) volumes rose 14 per cent, supported by 18-19 per cent growth in the Eastern and Western regions.

Light commercial vehicle (LCV) volumes grew 21 per cent, led by a 33 per cent increase in the South and 19 per cent growth in the East. Northern India recorded comparatively lower growth of 13 per cent.

The regional trends indicate stronger consumption momentum in Southern markets during the quarter, while the shift towards scooters continued alongside the broader adoption of electric two-wheelers.

(KNN Bureau)