Mumbai, Oct. 8 -- India's two-wheeler and commercial vehicle (CV) segments are better placed to outperform passenger vehicles amid rising commodity costs, according to a report by Emkay. The report attributed the outlook to strong demand, greater pricing flexibility and a limited pipeline of new passenger vehicle models in FY27.
India's automobile industry, excluding tractors, recorded steady growth, with select original equipment manufacturers (OEMs) outperforming across segments. Growth in CVs and passenger vehicles (PVs) remained broad-based, while retail momentum was sustained across the industry.
Two-wheeler (2W) retail sales rose 33 per cent year-on-year, compared with growth of 22 per cent in H2FY26, 29 per cent in July and 21 per cent in August 2026. Passenger vehicle sales also grew across OEMs, led by Maruti Suzuki India, which recorded 30 per cent year-on-year growth in domestic sales.
Medium and heavy commercial vehicle (MHCV) retail sales maintained strong momentum, increasing 50 per cent year-on-year. This followed growth of 30 per cent in July and 29 per cent in August 2026. Tractor volumes, however, declined across manufacturers, with Escorts and Mahindra & Mahindra reporting year-on-year falls of about 17 per cent and 21 per cent, respectively.
Emkay said overall vehicle volumes remained healthy, although year-on-year growth appeared softer because of the timing of the festive season. Diwali will fall in November 2026, compared with October 2025, while the prior-year comparison also reflects a high September 2025 base after purchases were deferred in August following the Goods and Services Tax cut. Against this backdrop, the brokerage favoured 2W and CV OEMs over PV manufacturers, citing similar demand trends, stronger pricing flexibility and fewer new PV launches expected in FY27.
Published by HT Digital Content Services with permission from Construction World.