Vehicle registrations rebound 11% in March to all-time high on pre-tax buying

• Total registrations rise to 55,470 units, led by two-wheelers and cars
• Brand-new car and SUV registrations surge amid front-loaded demand
• EVs account for over 83% of new car registrations driven by BYD
• Momentum seen moderating with SSCL implementation and rupee volatility

Vehicle registrations increased to an all-time monthly record of 55,470 units in March, up 11.1% from the previous month, with growth driven by a broad-based pick up across segments, according to HNB Stockbrokers.

Two-wheeler registrations rose 15.7% month-on-month (M-o-M) to 38,977 units, while brand-new car and Sports Utility Vehicle (SUV) registrations increased 32.2%, reflecting a sharp rebound in passenger vehicle demand.

HNB Stockbrokers said the recent spike in registrations likely reflects a front-loaded response ahead of regulatory changes, noting that “the implementation of the Social Security Contribution Levy (SSCL) from April 2026, alongside increased rupee volatility, is likely to moderate momentum for the rest of the year as pent-up demand is fully absorbed.”

The firm said importers appear to have advanced purchases in anticipation of the regulatory shift, while also pointing to divergence in views between the Government and industry associations on the regulatory framework.

Its analysis, which focuses on brand-new cars, SUVs, and commercial vehicles, showed motor car registrations at 4,465 units in March, of which 1,277 units or 28.6% were brand new, with a  year-to-March growth of around 17.4%.

SUV registrations totalled 5,051 units, including 2,186 brand-new units accounting for 43.3%, with a year-to-March growth of about 43.5%. Commercial vehicle registrations reached 2,698 units, of which 1,744 units or 64.6% were brand new, reflecting a year-to-date (YTD) growth of 60.1%.

Brand-new motor car registrations rose sharply to 1,277 units in March, up 177% from the previous month, reversing a 6.1% decline in February. BYD led the segment with 785 units, while Toyota registrations doubled to 126 units. BAW registrations declined M-o-M to 173 units.

Electric vehicles (EVs) accounted for 83.1% of new car registrations, driven largely by the BYD Atto 1 model, priced around Rs. 8 million to Rs. 9 million, while the BAW E7, priced at approximately Rs. 5 million to Rs. 6 million, remained a strong contender in the lower price segment.

HNB Stockbrokers said the rebound in passenger car demand was driven by increased availability of competitively priced electric models, with demand strengthening as pricing aligns with affordability segments.

In the SUV segment, brand-new registrations rose marginally by 1.3% M-o-M to 2,186 units. Suzuki and Nissan collectively accounted for around 47.8% of the market, with the Fronx and Magnite models remaining popular within the Rs. 9 million to Rs. 10.5 million price range.

Internal combustion engine vehicles continued to dominate SUVs, accounting for 76.3% of registrations, reflecting limited availability of competitively priced electric alternatives. Plug-in hybrid models, including BYD’s Sealion range, gained traction at higher price points.

Commercial vehicle registrations increased 27.7% M-o-M to 1,744 units, supported by growth across all sub-categories. Pickup truck registrations rose 77.2% to 693 units, with Mahindra and Tata accounting for around 86% of the segment.

Truck registrations increased 14.6% to 535 units, led by Isuzu, while the bus and coach segment recorded 296 units, up 16.5%, with Mitsubishi capturing 36.8% of market share.