Wholesale volumes grew by 16.5% in July 2026 and retail volumes increased by 28.3% on a YoY basis, supported by strong demand sentiments. ICRA estimates 2W domestic volume growth to moderate to 3-5% YoY in FY2027, constrained by a high base (H2 FY2026) and weak monsoon outlook. 

• Retail volumes grew at a healthy pace – Retail sales rose by 28.3% YoY in July 2026, aided by improved affordability, easier retail financing and strengthening rural demand.
  
• Export volumes continued to grow in double digit – Monthly export volumes rose by 28.9% YoY in July 2026 despite headwinds in certain overseas markets.