ICRA estimates 2W domestic volume growth to moderate to 3-5% YoY in FY2027, constrained by a higher base.  Wholesale volumes grew by 33.7% in February 2026; retail volumes increased by 25.0% on a YoY basis.  Domestic wholesale volumes grew by 33.7% year-on-year (YoY) in February 2026, reaching 1.8 million units; wholesale volumes have recorded an 8.7% growth during 11M FY2026 (April-February). Building on the previous quarter’s momentum, demand remained buoyed by the GST rate cut and festive season-led uptick. The ongoing conflict in West Asia poses supply chain risks that could affect manufacturing operations and export flows; industry participants continue to closely monitor the evolving geopolitical situation.

Exhibit : Comparison of domestic 2W retail and wholesale trends