Passenger vehicle wholesales climbed 30.7% year-on-year to 1.4 million units in the second quarter of FY27, heavily driven by premium models in the Rs 12 lakh to 20 lakh segment. In contrast, demand for budget vehicles priced between Rs 7 lakh and 12 lakh contracted slightly. Alternative powertrains made substantial gains, with CNG vehicle registrations rising roughly 50% to outsell petrol options in several states. However, this wholesale expansion has pushed dealer inventory levels to more than double the recommended standard.
Key points
Wholesale vehicle shipments expanded faster than retail demand, creating a substantial in…: Wholesale vehicle shipments expanded faster than retail demand, creating a substantial inventory backlog for automotive dealers.
Consumer adoption of non-petrol powertrains gained traction as electric vehicle registrat…: Consumer adoption of non-petrol powertrains gained traction as electric vehicle registrations nearly doubled to 97,000 units.
Budget car segments experienced sales contraction as consumer spending shifted toward fea…: Budget car segments experienced sales contraction as consumer spending shifted toward feature-loaded compact and sub-compact SUVs.
Sources checked by our analysis pipeline: 1
The Rs 12 lakh-20 lakh price band recorded the strongest growth in passenger vehicle sales in the second quarter of FY27, while petrol’s share of registrations declined as electric vehicles (EVs) and compressed natural gas (CNG) gained ground, according to Wheelwatch: Deloitte India’s auto sector tracker.
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The Rs 12 lakh-20 lakh band grew 33.6% year-on-year in Q2 FY27, gaining 1.2 percentage points in segment share, Deloitte said in its auto tracker report. In contrast, the Rs 7 lakh-12 lakh band, which accounts for nearly half of passenger vehicle sales, contracted 0.4%.
The trend points to affordability-led demand following the GST 2.0 changes, the report said, with buyers showing greater traction in a higher price band even as the largest-selling segment saw a marginal decline.
Passenger vehicle wholesale volumes grew 30.7% year-on-year to 1.4 million units during the quarter, accelerating from 25.9% growth in Q1 FY27. Sub-compact and compact SUVs led the expansion, growing 31% and 53.1%, respectively. Retail sales grew at a slower 22.2%.
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