New Delhi, May 20: India’s two-wheeler sector is projected to achieve an annual growth rate of 5% in FY27, driven by a reduction in GST and increasing replacement demand, according to a report released on Wednesday.
The report from ICRA indicates that domestic two-wheeler wholesale volumes surged by 29.2% year-on-year in April, reaching 1.9 million units, largely due to the implementation of GST 2.0.
However, the report also cautions that growth may slow in the coming months due to high base effects, weak monsoon forecasts caused by El Niño, rising fuel prices, and increasing input costs.
Retail demand remained robust this month, with a year-on-year increase of 13%. This growth was supported by lower-than-expected price hikes, stable cash flow in rural areas due to strong agricultural production, and the ongoing wedding season that lasts until mid-May.
Additionally, the electric two-wheeler (E2W) segment continued its upward trajectory, with retail sales in April 2026 reaching 154,337 units, marking a remarkable 68.1% increase compared to the previous year.
For FY26, E2W sales are expected to rise by approximately 22%, with its market share in the overall two-wheeler sector reaching 8.1% in April 2026.
The report highlights that the steady growth of this segment reflects increasing consumer acceptance, bolstered by greater product availability and improved cost competitiveness.
Moreover, the export sector remains a significant growth driver, with monthly export volumes increasing by 38.3% year-on-year in April, despite challenges in some foreign markets.
For FY26, overall two-wheeler exports are projected to grow by 23.3%, supported by an expanded product portfolio and the rising global recognition of Indian two-wheeler brands.
However, the report emphasizes that geopolitical uncertainties, particularly ongoing tensions in West Asia, could pose risks to supply chains and export performance.
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My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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