The Indian two-wheeler market is positioned for growth, with an expected 9% increase in sales for the current fiscal year. Factors driving this growth include strong replacement demand, recovering urban consumption, and improved rural income, supported by a normal monsoon. The government is considering a GST reduction for smaller vehicles, including two-wheelers, potentially impacting the market positively. This cut, expected before the festive season, is seen as a major boost for the industry. Two-wheeler exports rose by 32% in July 2025, giving good support to the industry. Meanwhile, there was a slight decline in sales of electric two-wheelers. In July, it fell to 1,02,900 units, a decrease of about 2%. However, electric two-wheelers’ share remained stable at 6-7% of the total domestic two-wheeler market.
