Two-Wheeler Sales Poised To Accelerate By 9% In FY 26: Report

New Delhi: India’s two-wheeler business is poised to surpass pre-Covid gross sales ranges within the monetary yr 2025-26, with an anticipated quantity expansion of 8-9 in keeping with cent, consistent with a CareEdge Ratings document launched on Monday. 

Key tailwinds equivalent to easing inflation, upper disposable source of revenue pushed via a complete source of revenue tax rebate for people incomes as much as Rs 12 lakh in keeping with annum and a extra accommodative financial coverage — highlighted via the cumulative 100 bps price lower via the RBI since February 2025 with contemporary 50 bps price lower introduced in June 2025 — are set to spice up shopper sentiment and affordability. A beneficial monsoon may just additional fortify the expansion potentialities, environment the level for the business volumes to surpass pre-Covid ranges.

CareEdge Ratings notes that all through the previous 3 years, finishing FY25, the Indian two-wheeler business maintained wholesome quantity expansion of 8 in keeping with cent, 10 in keeping with cent, and 11 in keeping with cent in FY23, FY24, and FY25, respectively.

Volume expansion in FY25 was once supported via a considerable 21 in keeping with cent export restoration and a 9 in keeping with cent upward push in home volumes. The export restoration was once because of stabilisation in key markets suffering from inflation, prime rates of interest, and forex problems in previous years. Domestic volumes have been supported via a considerable uptick in rural call for and sustained city call for, the document states.

Madhusudhan Goswami, assistant director at CareEdge Ratings stated, “CareEdge Ratings anticipates that the two-wheeler industry is set to vroom past the pre-Covid levels in FY26 with healthy volume growth of approximately 8-9 per cent, aided by export volumes accelerating at 12-14 per cent and domestic sales volumes maintaining a steady 6-8 per cent rise.”

“This growth trajectory will be driven by strong export demand, rising adoption of electric vehicles (EVs), easing inflation, and a revival in rural sentiment, supported by expectations for a favourable monsoon and improved income levels. Additionally, the cumulative 100 bps rate cut by the RBI since February 2025, with the recent 50 bps rate cut announced last week, is expected to enhance affordability and boost demand,” he added.

In FY25, rural spaces accounted for 58.30 in keeping with cent of overall retail registrations, marginally up from 57.9 in keeping with cent in FY24. While FY25 wholesale volumes of 23.81 million devices stay slightly under the FY19 height, the business is ceaselessly last the distance. Though recuperating from post-Covid demanding situations and value sensitivity, entry-level bikes have persistently stepped forward since FY23. A shift in shopper desire against scooters and govt bikes has additionally reshaped the marketplace, signalling evolving call for patterns, the document added.