Revving Forward: The Growth Trajectory of the Two-Wheeler Industry

The two-wheeler industry is poised for substantial growth, projected at an 8-9% CAGR long-term, powered by GST cuts and economic progress. TVS Motor's CEO anticipates robust sales especially in the first half of next fiscal, citing enhanced road connectivity and growing self-employed population as growth drivers.

The two-wheeler industry is set to experience significant growth, according to TVS Motor Company CEO KN Radhakrishnan. With the influence of a GST rate cut and increased government spending on infrastructure, Radhakrishnan suggests an 8-9% CAGR could be expected in the long term.

He forecasts a strong start to the next fiscal year, as the impact of the GST rate cut continues to boost the sector. Radhakrishnan emphasized the growth potential driven by improved road connectivity and the rising self-employed population, bolstering the demand for two-wheelers as a practical mode of personal mobility.

The ongoing fiscal has already benefited from the GST cut, with anticipated growth rates reaching upward of 15% in the short term. Despite a modest 2% growth in the first half of FY26, the industry is set to see a rebound, projecting around a 9% growth for the year overall.

(With inputs from agencies.)