Domestic two-wheeler volumes are projected to grow by 8-9% in FY26, surpassing pre-COVID levels, supported by factors like easing inflation and favorable Monsoon expectations.
In the past fiscal years, the industry maintained healthy volume growth, with FY25 seeing a substantial 21% export recovery and a 9% rise in domestic volumes.
Anticipated growth in FY26 is attributed to strong export demand, increasing adoption of electric vehicles, easing inflation, and improved income levels, along with RBI rate cuts boosting affordability and demand.
Overall growth in two-wheeler volume over the years has been driven by increasing demand for electric two-wheelers, with FY25 seeing E2W sales reach 1.20 million units, reflecting significant year-on-year growth.