Auto demand stays firm post-festive as Vahan data shows strong momentum in FY26

India’s auto sector is maintaining steady momentum even after the festive season, with Vahan registration data indicating that demand remains firm across key vehicle categories.This continued traction suggests that industry growth targets for FY26 are achievable, as the required pace of expansion for the remaining four months now appears manageable.
Vahan data for November 11–27, 2025, shows that two-wheelers recorded a 38% year-on-year increase, while passenger vehicles rose 31%. These growth rates are measured against the post-festive period of November 22–December 8, 2024.
Activity typically slows after festivals, yet the latest numbers point to sustained consumer buying, smooth inventory movement at dealerships, and steady support from financing channels.The eight-month trend from April to November reinforces the sector’s strength. Two-wheelers have grown 10% during this period, which is already at the upper end of the industry’s full-year forecast for FY26.

If current momentum continues, manufacturers may exceed their annual expectations. Passenger vehicles have expanded 8% in April–November, surpassing the industry’s FY26 projection of 5–6%, indicating that the segment is running ahead of its planned trajectory.

According to Elara Securities, the “ask rate” required from December 2025 to March 2026 is now relatively modest. The two-wheeler industry needs 7% growth during these months to meet the FY26 estimate of 9%.

The passenger vehicle industry requires only 1% growth in the same period to achieve its FY26 forecast of 5.5%. This suggests that both segments are well-positioned to meet their full-year targets if current trends hold.