ICRA projects 6-9% volume growth for FY2026 as GST cuts and festive demand shape market dynamics.
19 Dec 2025 | 1625 Views | By Shruti Shiraguppi
Domestic two-wheeler wholesale volumes grew 19% year-over-year to 1.8 million units in November 2025, while retail volumes declined 3.1% during the same period, according to ICRA's latest report released on the sector's performance.
The divergence between wholesale and retail figures reflects dealers replenishing inventory after the festive season, supported ...
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Domestic two-wheeler wholesale volumes grew 19% year-over-year to 1.8 million units in November 2025, while retail volumes declined 3.1% during the same period, according to ICRA's latest report released on the sector's performance.
The divergence between wholesale and retail figures reflects dealers replenishing inventory after the festive season, supported by GST rate cuts and manufacturer offers that sustained showroom traffic. ICRA attributed the wholesale growth to these factors prompting increased dispatches from original equipment manufacturers to dealers.
Retail sales declined primarily due to an early festive season in the current fiscal year, following record-breaking sales in October 2025. The October surge was driven by GST rate reductions and festive demand. Dealers have reported continued steady customer footfall, supported by positive sentiment around the GST cuts and demand from the ongoing wedding season.
Electric two-wheeler sales recorded a marginal decline of 1.4% year-over-year, with retail volumes reaching 117,335 units in November 2025. Monthly penetration of electric two-wheelers within the overall segment remained stable at 6-7% during the first eight months of FY2026, indicating gradual adoption.
The export segment continued its double-digit growth trajectory, rising 27.9% year-over-year in November. Industry export volumes increased 23.6% during the April-November period of FY2026, supported by a relatively low base in the corresponding period of FY2025.
ICRA projects domestic two-wheeler volume growth of 6-9% year-over-year for FY2026. The rating agency expects this growth to be aided by improved replacement demand following GST rate cuts, anticipated recovery in urban consumption, and healthy rural incomes driven by normal monsoon conditions.