India’s automobile sector entered FY27 on a mixed note, with passenger vehicles (PVs) and tractors continuing to demonstrate healthy demand momentum, while two-wheelers (2Ws) and commercial vehicles (CVs) showed signs of moderation amid external headwinds and evolving market dynamics.
The PV segment remained the standout performer in May, supported by robust retail demand, lean dealer inventories, healthy order backlogs, and new capacity additions. These factors translated into stronger-than-expected wholesale growth across the industry. Demand was particularly strong in utility vehicles and newly launched models, while inventory discipline across dealerships helped sustain production and dispatch momentum. The segment also benefited from improving consumer sentiment and continued product innovation, including growing traction in electric vehicle offerings.
