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Two-Wheelers, CVs to Outperform Passenger Vehicles by FY27: Report
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Storyboard•04-10-2026, 17:36
Two-Wheelers, CVs to Outperform Passenger Vehicles by FY27: Report
- •Emkay predicts two-wheelers and commercial vehicles will likely outperform passenger vehicles in FY27 due to firm demand and greater pricing flexibility to manage rising commodity costs.
- •The auto market, excluding tractors, shows healthy momentum with strong performance from several OEMs and resilient retail sales across CVs and PVs.
- •Two-wheeler retail sales surged 33% year-on-year, while medium and heavy commercial vehicle (MHCV) retail sales climbed 50% year-on-year.
- •Passenger vehicle sales also grew, with Maruti Suzuki India recording 30% year-on-year growth in domestic sales, but tractors saw declines.
- •Despite festive season timing affecting year-on-year comparisons, Emkay favors 2W and CV OEMs due to stronger pricing flexibility and a limited pipeline of new PV models.
Key Questions Answered
Two-wheelers and commercial vehicles are expected to have an edge because of firm demand and stronger pricing flexibility for manufacturers in these categories to handle rising commodity costs. Additionally, passenger vehicles face a limited pipeline of new models in FY27.
Medium and heavy commercial vehicle retail sales climbed 50% year-on-year, following growth rates of 30% in July and 29% in August.
Tractors were an exception to the broader market trend, with volumes dropping across manufacturers like Escorts and Mahindra & Mahindra by around 17% and 21% year-on-year, respectively.
