India's two-wheeler industry recorded a significant decline in wholesale volumes during April 2025, with domestic shipments falling 18.8% year-on-year to 1.39 million units, according to a report by credit rating agency ICRA. However, retail volumes showed resilience with a 2% growth during the same period.
The wholesale volume decline was attributed to production shutdowns undertaken by manufacturers for supply chain alignment and scheduled maintenance activities. Despite the sharp drop in wholesale figures, retail sales demonstrated stability, supported by festive season demand including Chaitra Navratri, Akshay Tritiya, and Baisakhi celebrations. Retail volumes also registered a 12% sequential growth compared to the previous month.
Export volumes provided some relief to manufacturers, growing 14.8% on a partially curtailed base. However, the growth remained constrained by foreign exchange shortages and inflationary pressures in key markets such as Nigeria, ICRA noted.
The electric two-wheeler segment experienced volatility during the period. After reaching 130,274 units in March 2025 with a robust 71% sequential growth, electric two-wheeler volumes moderated to approximately 91,800 units in April. The electric vehicle penetration in the two-wheeler segment continues to remain in the 5-6% range on a monthly basis.
India's two-wheeler industry represents one of the world's largest motorcycle and scooter markets, serving both domestic transportation needs and export demands. The sector has been recovering from pandemic-related disruptions and has faced challenges from supply chain constraints and changing consumer preferences toward electric mobility.
ICRA maintains an optimistic outlook for the industry, forecasting wholesale volume growth of 6-9% year-on-year for fiscal year 2026. The projection is based on expectations of steady replacement demand, anticipated recovery in urban markets, and healthy rural incomes driven by early indications of normal monsoon conditions.
The two-wheeler industry serves as a crucial economic indicator in India, where motorcycles and scooters remain primary transportation modes for millions of consumers. The sector's performance reflects broader economic trends, consumer spending patterns, and rural-urban demand dynamics across the country.