Wholesale volumes grew by 19.0% in November 2025; retail volumes declined by 3.1% on a YoY basis. ICRA estimates 2W domestic volumes to register a growth of 6–9% YoY in FY2026; the recent cut in GST rates is likely to support demand.

• Wholesale volumes record a robust growth – Domestic wholesale volumes grew by 19.0% year-over-year (YoY) in November 2025, reaching 1.8 million units. Goods and Service Tax (GST) cuts and Original Equipment Manufacturer–dealer (OEM) offers sustained showroom footfalls post-festive season, prompting dealers to replenish inventory which supported wholesale dispatches.
• Retail volumes moderate post strong festive season – Retail sales declined by 3.1% YoY in November 2025, largely due to an early festive season in the current fiscal. This comes after record-breaking sales in October, driven by a sharp rebound supported by GST rate cuts and festive tailwinds. Dealers continue to report steady customer footfall, buoyed by positive GST sentiment and strong demand from the ongoing wedding season.