India's festive auto sales show mixed trends; two-wheelers outperform passenger vehicles: Jefferies

New Delhi: 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.

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Notably, this comes after strong growth in the first half of FY27 (April-September), 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.

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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.