India’s automobile sector has witnessed mixed demand trends during the first 14 days of the festive season. According to a report by Jefferies, two-wheeler registrations saw a 16% year-on-year increase, while passenger vehicle registrations recorded a 6% decline. This suggests that demand for two-wheelers remains robust, whereas the momentum for cars has slowed down.
The report notes that during the first half of the 2026-27 fiscal year (April to September), two-wheeler registrations grew by 22% year-on-year, while wholesale sales increased by 17% during the same period.
Slowdown in Passenger Vehicle Demand
In the first seven days of the festive season, passenger vehicle registrations had shown a healthy 7% year-on-year growth. However, demand momentum appeared to taper off in the second week, resulting in a 6% decline when looking at the cumulative figures for the first 14 days.
Nevertheless, the passenger vehicle segment performed strongly during the first half of the 2026-27 fiscal year. According to Jefferies, registrations and wholesale sales in this segment grew by approximately 28–29% year-on-year between April and September.
76% Surge in Truck Registrations
Truck and tractor registrations also saw significant growth during the first 14 days of the festive season, with truck registrations surging by 76% year-on-year. It should be noted, however, that this sharp rise is partly due to a weak base from the previous year; during the same period last year, truck registrations had declined by 26%.
According to the report, the Compound Annual Growth Rate (CAGR) for truck registrations during the initial phase of the festive period—when compared to 2024—stood at 14%. Tractor registrations rise by 21%; outlook on future demand remains in focus
During this period, tractor registrations saw a 21% year-on-year increase. Previously, in the first half of the 2026-27 financial year, tractor registrations had grown by 18%.
However, some concerns persist regarding the demand for tractors in the second half of the financial year. According to the report, a high base from the previous year and a weak monsoon could exert pressure on future tractor demand.
Overall, initial data from the festive season presents a varied picture of demand across different segments of the auto sector. While two-wheeler demand remains robust, there has been a softening in demand for passenger vehicles, whereas registrations for trucks and tractors have shown an increase.
