Festive rush puts two-wheelers in the fast lane, registrations jump 23%

NEW DELHI: Two-wheelers have emerged as the strongest performers in India's festive vehicle market so far, with registrations climbing 23% year-on-year in the opening week of the season. Passenger vehicles also saw an increase, but their 7% growth was considerably lower, according to a Jefferies research report.The gap in performance comes even as both categories posted healthy registration growth in the first half of FY27. Between April and September, passenger vehicle registrations rose 28–29%, ahead of the 22% increase in two-wheelers. However, the latest festive-period figures show two-wheelers gaining pace despite a high base created by last year's Goods and Services Tax (GST) cuts.Jefferies assessed registrations between October 11 and 17, 2026, against September 22–28, 2025, to account for the shift in the festive calendar. In its equity research report, the brokerage said, "Auto registration data for the initial festive period shows strong demand momentum for 2Ws, trucks and tractors."Highlighting the performance of two-wheelers, it added, "2W registrations in the first 7 days of festive are up a strong 23% YoY, despite the high base post the GST cut last year,"Passenger vehicles recorded more modest gains during the same period. Jefferies noted, "PV registrations are also up 7% YoY, although lagging 2Ws on growth."The two-wheeler segment's performance also held up against a longer-term comparison. Over the past two years, registrations in the first festive week posted a compound annual growth rate (CAGR) of 17% compared with the corresponding period in 2024. Passenger vehicles recorded a lower CAGR of 10% over the same period. The comparison provides a longer-term measure of growth beyond the year-on-year increase.Trucks registered one of the sharpest increases among vehicle categories, with registrations nearly doubling to rise around 101% year-on-year in the first seven days of the festive season. However, the brokerage attributed part of this jump to a weak base, as truck registrations had fallen 32% during the corresponding period last year.Tractor registrations rose 28% year-on-year during the opening week of the festive season, exceeding the 18% growth recorded between April and September. Despite the stronger start, Jefferies flagged potential pressure on tractor demand in the second half of FY27, citing a high comparison base and weak monsoon conditions.The early figures point to growth across two-wheelers, passenger vehicles, trucks and tractors, though the pace has varied between segments. Whether the initial momentum continues will become clearer as the festive period progresses, with the month-long season running through November 11.You use AI every day. Now get your AI Quotient. Take the AIQ test.