Wholesale volumes grew by 6.0% YoY and retail volumes by 6.5% YoY in September 2025. Despite a marginal 0.7% YoY wholesale volume growth in H1 FY2026, ICRA estimates 2W domestic volumes to register a growth of 6-9% in FY2026; the recent cut in GST rates is likely to aid an improved demand environment for two-wheelers in H2 FY2026.

• Wholesale volumes grow at a moderate pace – In September 2025, domestic wholesale volumes grew by 6.0% on a YoY basis to 2.0 million units, with Original Equipment Manufacturers (OEM) maintaining healthy dispatches in anticipation of improved demand during the festive season.
• Export volumes continue to grow – Monthly export volumes reported a growth of 15.3% YoY. The industry export volumes have grown at a robust pace over the past few months, on a relatively curtailed base.