India’s Car Market Accelerates: Passenger Sales Up 30.7% as EV Registrations Nearly Double

India’s automobile industry recorded strong growth in the second quarter of FY2027, the July-to-September 2026 quarter, according to the sixth edition of Deloitte India’s Wheelwatch tracker. Passenger-vehicle wholesale sales climbed 30.7% year on year to about 1.4 million units, commercial vehicles rose 28.8% and two-wheelers advanced 15.1%. Deloitte India automotive sector leader Rajat Mahajan said FY2027 “has maintained its strong start,” with passenger and commercial vehicle growth accelerating while two-wheeler demand held firm on a higher base.

Electric vehicles are now a visible part of the story rather than a footnote. Electric passenger-vehicle registrations increased 93.6% year on year to approximately 97,000 units in the quarter, lifting EV penetration to 6.7%, up from 6% in the previous quarter. Electric two-wheeler penetration crossed the 10% threshold for the first time.

The quarter benefited from favourable financing conditions and a comparatively low base ahead of GST rate reductions, which pulled demand forward. Rising wholesale inflation and uneven commodity costs continued to challenge manufacturers, and the report notes that buyers are increasingly favouring feature-rich SUVs, premium motorcycles and alternative-fuel vehicles.

The one number to watch is inventory. Passenger-vehicle dealer stocks increased from about 33 to 35 days at the end of July to 43 to 45 days by the end of September — around twice the recommended level of 21 days. Strong wholesale growth means little if the cars sit on dealer lots, so the next quarter will show whether retail demand catches up with what factories shipped.