Rating agency data shows retail volumes surged 51.8 percent to 3.15 million units driven by GST cuts, festive season demand, and strong rural market performance outpacing urban areas amid healthy farm incomes.
25 Nov 2025 | 1627 Views | By Sarthak Mahajan
India's two-wheeler retail sales reached a record high in October 2025, according to data from rating agency ICRA, with volumes growing 51.8 percent to 3.15 million units compared to 2.08 million units in the corresponding month last year.
The surge marks a sharp rebound following muted demand in September, ...
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India's two-wheeler retail sales reached a record high in October 2025, according to data from rating agency ICRA, with volumes growing 51.8 percent to 3.15 million units compared to 2.08 million units in the corresponding month last year.
The surge marks a sharp rebound following muted demand in September, which was affected by the GST 2.0 transition. ICRA attributed the growth to multiple factors including GST rate reductions, festive season demand during Dussehra and Diwali, and strong rural market performance.
Rural markets outperformed urban areas during the month, supported by healthy farm incomes, the agency noted.
Electric two-wheeler retail volumes reached 144,365 units in October 2025, representing a 4 percent increase over 139,337 units in the year-ago period. Monthly electric two-wheeler penetration within the overall segment remained stable at 6–7 percent, indicating gradual adoption patterns.
On the wholesale front, domestic dispatches totaled 2.1 million units in October 2025, growing 1.5 percent against 2.07 million units in October 2024. The modest growth reflects a high base effect, though original equipment manufacturers sustained healthy dispatches supported by robust festive season demand.
Export volumes grew 17.8 percent to 430,035 units in October 2025 compared to 365,166 units in the same month last year. For the seven-month period of FY2026 from April to October, industry export volumes recorded 23.0 percent growth, reaching 2.86 million units against the corresponding period of FY2025, supported by a relatively low base.
ICRA estimates two-wheeler domestic volumes will register year-on-year growth of 6–9 percent in FY2026 against 19.9 million units in FY2025, with volumes remaining flat in the first seven months of the current fiscal year.
The rating agency said the recent GST rate cuts are likely to support demand, aided by improved replacement demand, expected recovery in urban demand, and healthy rural incomes driven by a normal monsoon.