Jefferies Report: Two-Wheelers and Tractors to Outpace Cars and Trucks by 2027
Jefferies Report: Two-Wheelers and Tractors to Outpace Cars and Trucks by 2027
In a recent report, Jefferies, a financial services company, predicts that two-wheelers (2Ws) and tractors will grow faster than passenger vehicles (PVs) and trucks from 2025 to 2027. The report forecasts a 13% to 15% annual growth rate for 2Ws and tractors, compared to 5% to 8% for PVs and trucks.
Growth Trends
Between 2025 and 2027, 2Ws are expected to grow at 13% and tractors at 15%. In contrast, PVs and trucks are projected to grow at 8% and 5%, respectively. This marks a significant turnaround for 2Ws, which had lagged behind PVs due to pandemic disruptions and higher costs.
Market Shifts
In the PV market, traditional leaders Maruti Suzuki and Hyundai have seen their market shares drop to 12-year lows. Mahindra & Mahindra is poised to become the second-largest manufacturer by 2027.
Electric Vehicles
Electric vehicle (EV) adoption in 2Ws has been slow, with sales stagnating at 4% to 7%. However, Jefferies expects this to rise to 10% by 2027, led by Bajaj Auto and TVSL. In PVs, EV adoption is even slower at 2%, with Tata Motors leading the way.
Doubts Revealed
Jefferies
Jefferies is a company that provides financial services like investment banking and research. They study markets and make predictions about how different industries will perform in the future.
Two-wheelers
Two-wheelers are vehicles like motorcycles and scooters that have two wheels. They are very popular in India because they are affordable and can easily navigate through traffic.
Tractors
Tractors are strong vehicles used mainly in farming to pull heavy equipment and help with tasks like plowing fields. They are important for agriculture, which is a big part of India's economy.
Passenger vehicles
Passenger vehicles are cars that people use for personal travel. They are different from trucks, which are used to transport goods.
Mahindra & Mahindra
Mahindra & Mahindra is a big Indian company that makes vehicles, including cars and tractors. They are well-known in India for their strong and reliable vehicles.
Hyundai
Hyundai is a company from South Korea that makes cars. They are popular in India and around the world for their stylish and efficient vehicles.
Electric vehicle adoption
Electric vehicle adoption refers to how many people are starting to use electric vehicles instead of those that run on petrol or diesel. Electric vehicles are better for the environment because they don't produce pollution.
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