Two-Wheeler Industry Gears Up for Accelerated Growth in FY26

In an optimistic outlook for the domestic two-wheeler industry, new reports indicate a robust growth trajectory surpassing pre-COVID levels. A recent analysis by CareEdge Ratings forecasts an 8-9% growth for FY26, underscored by easing inflation and the promise of a favorable monsoon.

CareEdge Ratings pointed out steady growth in volumes for the last three fiscal years, indicating an upward trajectory fuelled by a strong export recovery and rising domestic demand. Factors like stabilizing key markets and a notable rise in rural demand have bolstered the industry's performance.

The sector is poised for continued growth, driven by a surge in the adoption of electric vehicles and supportive fiscal measures, including a cumulative 100 bps rate cut by the RBI. Despite new OBD-II Phase-B emission norms, the market shows remarkable resilience and adaptability, suggesting a promising outlook.

(With inputs from agencies.)