India’s two-wheeler industry is projected to see a 5% year-on-year increase in wholesale volume growth for the fiscal year 2027. A recent report by ICRA revealed that wholesale volumes of domestic two-wheelers surged by 29.2% in April 2026, reaching 1.9 million units, driven by improved affordability post the implementation of GST 2.0 reforms.
The report also noted that growth might slow down in the upcoming months due to various factors like a high base effect, weak monsoon forecasts influenced by El Niño, fuel price hikes, and escalating input costs. Despite these challenges, retail demand remained robust in April, with volumes climbing 13% year-on-year, supported by controlled price increases, strong rural cash flows from agricultural activities, and an extended wedding season until mid-May.
Furthermore, the electric two-wheeler (e2W) segment continued its upward trajectory, with retail sales hitting 154,337 units in April 2026, marking a substantial 68.1% year-on-year growth. In FY2026, e2W volumes expanded by approximately 22%, achieving a penetration rate of 8.1% within the overall two-wheeler market by April 2026. The report attributed this consistent growth to increasing consumer acceptance, driven by wider product availability and enhanced cost competitiveness.
Exports played a vital role in driving industry growth, with monthly export volumes surging by 38.3% year-on-year in April 2026, despite challenges in some international markets. Over the fiscal year 2026, overall two-wheeler exports grew by 23.3%, supported by the expansion of product portfolios and the growing global recognition of Indian two-wheeler brands. However, the report highlighted geopolitical uncertainties, particularly tensions in West Asia, as potential risks that could impact supply chains and export performance.
