Revving Forward: Steady Growth in Indian Two-Wheeler Industry

The Indian two-wheeler industry is projected to sustain steady volume growth, driven by increased domestic sales, higher demand for EVs, new model launches, and a recovering export market. CareEdge Ratings highlights improved sales in FY23 and FY24, with expectations of continued growth in FY25.

The Indian two-wheeler industry is poised for sustained growth this fiscal year, fueled by an uptick in domestic sales and strong demand in the executive and premium motorcycle segments, as noted in a recent CareEdge Ratings report.

Post-Covid, the industry faced declining sales volumes during FY20, FY21, and FY22. However, sales began to pick up in FY23 and continued this positive momentum into FY24. CareEdge Ratings Director Hardik Shah attributes this growth to factors such as higher EV sales and the launch of CNG-powered two-wheelers.

The export market is also showing signs of revival, with significant double-digit volume growth in recent months. Despite a challenging start to FY24 due to price hikes and higher interest rates, the industry's growth was supported by new model launches and traction in EV volumes. The Indian government's initiatives, including the Electric Mobility Promotion Scheme 2024, are expected to further bolster electric two-wheeler sales.

(With inputs from agencies.)