New Delhi, August 27: A recent report released on Thursday highlights a robust performance in India’s two-wheeler market for August. The retail sales of two-wheelers saw an annual increase of 18 to 20 percent, driven by heightened demand during the Onam festival and a relatively low base from the previous year.
According to the report by Yes Securities, consumer interest in new vehicles remains strong. Organic inquiries have risen by 10 to 12 percent, with significant demand observed in both urban and rural markets. Premium internal combustion engine (ICE) vehicles and electric two-wheelers (EVs) are leading the growth in this sector. Vehicle manufacturers are also ramping up supply in anticipation of the upcoming festive season.
The report indicates that the passenger vehicle market has also performed well, with retail sales increasing by 11 to 13 percent year-on-year in August. The demand from Onam provided an additional boost of nearly 20 percent. Urban markets outperformed rural areas during this period.
Despite strong sales, vehicle dealers have maintained controlled stock levels. Passenger vehicle inventory is currently at about four weeks, although the wait time for popular alternative fuel models remains extended.
The commercial vehicle sector continues to show robust demand. The report suggests that the sales of medium and heavy commercial vehicles may receive additional support from a proposed ban on BS-4 vehicles in Delhi-NCR starting November 2026, likely increasing the demand for replacements of older vehicles.
The tractor segment also reported positive performance, with tractor sales maintaining a double-digit growth rate, indicating strength in the rural economy.
Yes Securities noted that dealers in urban, Tier-1, and Tier-2 cities have reported a significant surge in demand for electric vehicles. Sales and bookings for electric vehicles remained strong in August.
Consumer preferences are shifting as buyers are now focusing not just on cost but also on better technology, performance, and additional features. This shift is contributing to a relatively higher demand for premium models.
There has been a notable increase in demand for CNG and electric vehicles, with inquiries and bookings rising by over 30 percent. This trend is attributed to the launch of new models and concerns regarding E-20 fuel.
Wait times for popular brands remain long, with electric vehicles experiencing delays of three to four months, while traditional fuel-based vehicles have wait times of one to one and a half months.
To offset rising raw material costs, vehicle manufacturers have increased prices. The report states that major companies have recently implemented price hikes, with an additional increase of 0.5 to 1.5 percent anticipated.
However, there have been no significant changes to discount schemes. The level of discounts for both internal combustion engine and electric vehicles has remained relatively stable. Discounts are primarily being offered based on inventory management rather than artificially boosting demand.
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