ICRA estimates two-wheeler domestic wholesale volumes to grow by 3-5% YoY in FY2027, after recording a growth of around 9% in FY2026. Retail sales growth materially improved in H2 FY2026, aided by GST reforms and the festive season. OEMs are expected to maintain strong credit profiles, despite investments planned for EV platforms.

Exhibit : Domestic 2W industry growth trend

Source: SIAM data; ICRA Research; Note that domestic 2Ws include both registered (high-speed) and unregistered (low-speed) electric two wheelers (e2Ws)