Wholesale two-wheeler volumes maintained healthy momentum in June 2026, increasing by 17.9% YoY to 1.9 million units, supported by favourable demand sentiments, healthy OEM dispatches and new product launches. Retail volumes grew strongly by 21.2% YoY, aided by lower GST rates, improved affordability, lower financing costs and resilient consumer sentiments. Export volumes remained robust with 40.2% YoY growth despite challenges in certain overseas markets and evolving geopolitical developments in West Asia. ICRA expects industry wholesale volume growth to moderate to 3-5% in FY2027, constrained by a high base, anticipated weak monsoon conditions linked to El Niño, and vehicle price increases arising from input cost inflation, although replacement demand and GST rationalisation remain supportive factors.

Exhibit: Comparison of domestic 2W retail and wholesale trends