Archive · 9 Jun 2025
Two-Wheeler Sales Forecast to Rise in FY26
The two-wheeler market is predicted to grow in the next year.
Experts predict sales will increase by 8-9% thanks to factors like lower inflation and increased income.
The government has lowered interest rates.
Plus, the monsoon season should boost sales even further.
Scooters have done especially well and electric two-wheelers are also becoming more popular.
However, subsidies for electric vehicles are being reduced.
Two-wheeler sales are projected to grow 8-9% in FY26, despite price increases due to OBD-II Phase-B.
Easing inflation, increased disposable income, and lower interest rates are expected to boost demand.
A favorable monsoon could further strengthen growth prospects.
Scooter sales experienced strong double-digit growth for three consecutive years, reaching nearly 250 million units in FY25.
The rising appeal of electric two-wheelers contributes to overall growth, despite subsidy reductions.
- Who
- The two-wheeler industry.
- What
- Projected 8-9% growth in two-wheeler sales in FY26.
- When
- Published June 9, 2025, with growth projections for FY26.
- Where
- Mumbai
- Why
- Driven by easing inflation, increased disposable income, lower interest rates, and a favorable monsoon.
Overview
Overview
E2W Subsidies
Overview
The reduction of subsidies on E2Ws contributed to a deceleration in E2W volume growth in FY24 and FY25.
Overview
Subsidies will be reduced to ₹2,500 per kWh and capped at ₹5,000 per vehicle in FY26.
- Projected FY26 Volume Growth
- 8-9%
- FY25 Scooter Sales Growth
- 26%
- RBI Rate Cuts
- 100 bps since Feb 2025, plus 50 bps in June 2025
- FY25 Motorcycle Sales Growth
- 9%
Sources
Tata Motors shares FY27 Outlook: Aim for higher CV market share amidst subdued PV demand
Tata Motors lines up Rs 33-35k cr investment to boost PV biz
Tata Motors aims to increase CV market share to 40 per cent by 2027
Two-wheeler volumes likely to grow by 8-9 pc in FY26: Report