India's Auto Industry Faces Grim Forecast Amid Two-Wheeler Downturn
Motilal Oswal's report indicates a potential downturn in India's auto sector, as weak demand in the two-wheeler and passenger vehicle segments threatens industry growth forecasts. The two-wheeler industry, especially motorcycles, has seen a notable sales decline, raising concerns over economic uncertainty and consumer demand.
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- India
India's automobile industry is grappling with weaker-than-expected growth forecasts for the fiscal year 2026, as detailed in a recent report by Motilal Oswal. The report highlights a significant drop in demand across key segments, particularly two-wheelers (2Ws) and passenger vehicles (PVs), which has marked a slow start to the fiscal year.
While growth projections across most auto segments remain modest, the two-wheeler sector has notably underperformed. Despite sports utility vehicles (SUVs) providing a boost to the passenger vehicle category, the two-wheeler segment has reported a substantial 9.8% year-on-year decline in sales during April and May 2025, with motorcycles hit hardest.
As the two-wheeler market struggles with a 20.6% plunge in the 100cc bike segment and further declines across other engine capacities, the industry faces the prospect of revising its forecasts downward if demand does not pick up. Meanwhile, the car segment also faces challenges, experiencing a significant sales reduction. The industry's overall growth outlook remains muted amidst economic uncertainties and soaring fuel prices.
(With inputs from agencies.)
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