New Delhi, Nov. 2 -- Two-wheeler sales are set to outpace passenger vehicles for the remainder of the year, driven by strong festive demand, improved rural sentiment, and selective discounts.

A sectoral update by PhilipCapital noted that discounts in the two-wheeler segment are very selective, while passenger vehicle discounts are gradually declining.

The report added that the rural demand picked up in the last week of Diwali, as farmers received payments from mandis, coinciding with the wedding season, further boosting sales.

"Looking at the strong impetus, two-wheeler growth is likely to outperform passenger-vehicles in balance part of the year," the report added.

Inventory levels remain low to moderate, reflecting robust wholesale ...