Growth in top gear: 2-Wheeler industry forecasts robust FY26 performance

Favourable monsoon is also seen as one of the key growth drivers

India’s two-wheeler industry is poised for a robust FY26 and may reach the pre-pandemic high. An Economic Times report citing industry data on Monday said that latest outlook for FY26 sees the growth in fast lane on back of lower EMIs and high disposable income.

As per Society of Indian Automobile Manufacturers president Shailesh Chandra, a good monsoon may drive the growth in rural sector. In addition to this, the government’s support for EV purchase may also power the volumes across the sector, Chandra added.

However, the entry-level demand may influence the passenger vehicle segment, SIAM boss further said. Predicting growth momentum for 2-wheeler industry, Chandra said that there are several factors that may influence the numbers.

Five years ago, in FY19, the two-wheeler industry had registered highest recorded sales of 21.2 million units. But then coronavirus pandemic hit the world and the sales slumped. There has been a sustained recovery in the recent years with FY25 seeing sales going up to 19.6 million units, the ET report added. Honda Motorcycle & Scooter India's Director (sales and marketing) Yogesh Mathur also chimed in for positive outlook.

Mathur, as per ET report, said that he expects high sales growth in single-digit, irrespective of price rise. While there is a lot of optimism around two-wheeler segment, the passenger vehicle segment seems to face some challenges. As per SIAM data, the passenger vehicle segment is facing lukewarm response due to lower-end customers.