Two-Wheeler Industry Gears Up for Accelerated Growth in FY26

The domestic two-wheeler industry is anticipated to surpass pre-COVID levels with an 8-9% growth in FY26. Contributing factors include easing inflation, a favorable monsoon, strong demand for electric vehicles, and export growth. The industry shows resilience despite minor price increases due to new emission norms.

In an optimistic outlook for the domestic two-wheeler industry, new reports indicate a robust growth trajectory surpassing pre-COVID levels. A recent analysis by CareEdge Ratings forecasts an 8-9% growth for FY26, underscored by easing inflation and the promise of a favorable monsoon.

CareEdge Ratings pointed out steady growth in volumes for the last three fiscal years, indicating an upward trajectory fuelled by a strong export recovery and rising domestic demand. Factors like stabilizing key markets and a notable rise in rural demand have bolstered the industry's performance.

The sector is poised for continued growth, driven by a surge in the adoption of electric vehicles and supportive fiscal measures, including a cumulative 100 bps rate cut by the RBI. Despite new OBD-II Phase-B emission norms, the market shows remarkable resilience and adaptability, suggesting a promising outlook.