Wholesale volumes grew by 25.0% in January 2026; retail volumes increased by 20.8% 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 and policy measures announced in Union Budget 2026 are likely to continue to support demand.

• Wholesale volumes record strong growth - Domestic wholesale volumes grew by 25.0% year-on-year (YoY) in January 2026, reaching 1.8 million units; wholesale volumes have recorded a 6.7% growth during 10M FY2026 (April-January). Extending the momentum of the previous quarter, demand remained supported by the Goods and Services Tax (GST) rate cut.
• Retail demand also saw healthy growth - Retail sales increased by 20.8% YoY in January 2025. Volumes were aided by Pongal/Makar Sankranti demand, wedding season footfalls and improving affordability. Dealer interactions indicate sustained enquiry traction, supported by better customer outreach and faster digital responses, alongside a gradual preference for higher-value and mid-powered motorcycles.