TVS Motor Projects Single-Digit Growth for 2W Industry in FY27

TVS Motor Company expects India’s two-wheeler industry to post single-digit growth in the financial year 2027, after a strong rebound last year driven by a mid-year GST cut that boosted vehicle demand and helped the market cross pre-pandemic levels.

“We are expecting good single-digit growth in the industry this year. There are challenges in terms of gases and inflation. Thanks to the product range, demand is very robust. Scooter growth momentum will continue, EVs will be very good, the premium segment will also grow, the challenge will be in the economy category, where our proportion will be very small,” TVS Motor CEO KN Radhakrishnan said. 

The moderate outlook comes after India’s two-wheeler industry volumes rose 26.4% year-on-year to 21.71 million units in the financial year 2026. Demand received a strong lift after last year's GST reduction lowered vehicle prices, particularly benefiting entry-level motorcycles and scooters.

Motorcycle volumes grew 6.6% to 13.06 million units during the year, while scooter sales climbed 18.5% to 8.12 million units, reflecting rising urban mobility demand and growing acceptance of electric scooters.

Industry executives said retail demand has remained stable despite concerns around inflationary pressures linked to the ongoing conflict in West Asia. Companies have so far not seen any major impact on vehicle demand as fuel prices have largely remained steady, though automakers continue to monitor the situation closely.

Radhakrishnan said the company expects consumer demand to remain healthy, but flagged rising input costs and supply-chain risks as key concerns for the year ahead.

“In this financial year, we are looking at the continuation of the GST benefits. There are some headwinds in terms of the ongoing West Asia conflict. There are challenges in terms of commodity prices, steel, aluminium, and crude oil derivatives. And there are pressures on input costs, as well as some supply chain disruption,” he said.

“Supply-chain issues are improving; things are becoming better. This month is going to be better,” he added.

The company said scooters, electric vehicles and premium motorcycles are expected to remain the key growth drivers, while demand in the economy motorcycle segment could remain under pressure if inflation stays elevated or fuel prices rise sharply in the coming months.

India’s largest two-wheeler maker Hero MotoCorp and Bajaj Auto have also projected industry growth to moderate to mid- and high-single digits in the financial year 2027 after the sharp recovery seen last year.