Two-wheelers and Commercial Vehicles Set to Outperform Passenger Vehicles in FY27: Emkay Report
- IBEF
- October 5, 2026
India’s two-wheeler (2W) and commercial vehicle (CV) segments are expected to outperform passenger vehicles (PVs) in FY27, supported by strong demand and better pricing flexibility amid rising commodity costs, according to an Emkay report. India’s auto industry, excluding tractors, has maintained steady growth, with commercial vehicles and passenger vehicles recording broad-based growth and retail momentum remaining strong across segments. Two-wheeler retail sales increased 33% year-on-year, compared with 22% in H2 FY26, 29% in July and 21% in August 2026. Passenger vehicle sales also remained strong across original equipment manufacturers (OEMs), led by Maruti Suzuki India Limited, which recorded 30% year-on-year growth in domestic sales.
Medium and heavy commercial vehicle (MHCV) retail sales also maintained strong momentum, rising 50% year-on-year, compared with 30% in July and 29% in August 2026. In contrast, tractor volumes declined across manufacturers, with Escorts and Mahindra & Mahindra reporting year-on-year declines of about 17% and 21%, respectively. Overall vehicle volumes remained healthy, although year-on-year growth appeared softer due to the timing of the festive season, with Diwali falling in November 2026 compared with October 2025. A high September 2025 base, following purchase deferments in August after the Goods and Services Tax (GST) cut, also affected comparisons. The report favours 2W and CV original equipment manufacturers (OEMs) over PVs, citing similar demand trajectories, better pricing flexibility amid commodity pressures and a limited pipeline of new passenger vehicle models in FY27.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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