Passenger vehicles are expected to lead the expansion, while two-wheelers continue their strong recovery. The biggest highlight, however, remains the electric vehicle (EV) segment, where demand continues to surge despite an already high base.
According to the VAHAN registration data till June 21, total vehicle registrations have reached 17 lakh units, up almost 20% from 14.2 lakh units recorded in the corresponding period last year.
Passenger vehicle registrations have risen 23% year-on-year to 3.33 lakh units, making it the fastest-growing segment among mainstream categories. Two-wheeler registrations climbed 19% to 12.2 lakh units, while commercial vehicles registered a healthy 20% increase. Three-wheelers also maintained momentum with 16% growth.
The passenger vehicle segment is expected to outperform the industry during the month. Maruti Suzuki and Tata Motors’ passenger vehicle business are likely to report stronger-than-industry growth, while Mahindra & Mahindra is also expected to post healthy volume gains.
In contrast, Hyundai Motor India is seen losing market share as competition intensifies across SUV and premium hatchback categories. The two-wheeler market continues to witness broad-based demand.
TVS Motor and Royal Enfield are expected to gain market share, while Hero MotoCorp and Bajaj Auto are also likely to report healthy year-on-year growth.
Rural demand remains supportive, aided by expectations of a normal monsoon and improving consumer sentiment.
The electric two-wheeler space continues to remain one of the strongest growth stories in the auto sector. Ather Energy is expected to sustain healthy growth, while Ola Electric is on track to record its fourth consecutive month of more than 10,000 vehicle registrations.
Commercial vehicles are also witnessing healthy demand, although the competitive landscape remains mixed. Tata Motors’ CV business is expected to gain market share with healthy growth, while Ashok Leyland could see some market share erosion during the month.
In the tractor segment, delayed monsoon concerns have not impacted registrations so far. Mahindra & Mahindra’s tractor business is expected to outperform the industry, reflecting resilient rural demand.
The standout trend remains India’s rapidly expanding EV market. Battery-operated vehicle registrations have remained exceptionally strong through the first quarter of FY27.
EV volumes grew 44% year-on-year in April to 2.52 lakh units, followed by 48% growth in May at 2.76 lakh units. The momentum has continued into June. As of June 21, EV registrations have already reached 2.02 lakh units, which is 10% higher than the total EV registrations recorded during the entire month of June 2025. This suggests another month of strong double-digit growth once full-month data is available.
The sustained acceleration in EV adoption underscores improving consumer acceptance, expanding model availability and continued investments by manufacturers across both passenger and two-wheeler segments.
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