ICRA Forecasts 6–9% Growth in Two-Wheeler Sales for FY2025-26
The forecast is supported by steady replacement demand, a recovery in urban consumption, higher rural incomes
from normal rainfall, and potential benefits from a reduction in GST rates.
Positive Industry Outlook
ICRA noted that the overall outlook for the two-wheeler industry remains positive, with
stable demand expected to strengthen further. “The reduction in GST rates will provide additional impetus
to accelerate growth,” the agency said, adding that the festive season will likely boost sales momentum.
Recent Sales Trends
In July 2025, wholesale sales of two-wheelers rose by 9% to
1.5 million units, driven by higher dispatches to dealers. However,
retail sales fell 6.5% during the month, reflecting softer demand in urban markets
and lower rural purchases due to monsoon-related factors.
Festive Season and Exports
ICRA expects retail demand to improve as the festive season approaches, helping offset July’s weakness.
Exports are also likely to see steady growth, supported by improving global demand.
Together, these factors are expected to sustain a healthy growth trajectory for the industry in FY2025–26.
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