India’s two-wheeler industry is gearing up for a strong revival, with projections indicating that sales will surpass pre-Covid levels in the financial year 2025-26. The sector, which had faced setbacks during the pandemic years, is now riding on a wave of optimism fueled by positive economic indicators. An expected volume growth of 8-9 per cent, as per the latest CareEdge Ratings report, reflects the industry’s resilience and its capacity to rebound amidst changing market dynamics.The growth momentum is backed by a combination of favourable factors. The recent monetary easing by the Reserve Bank of India, including a cumulative 100 basis points rate cut, along with a full income tax rebate for individuals earning up to ₹12 lakh annually, is expected to improve affordability and boost consumer spending. Additionally, easing inflation and the possibility of a good monsoon are expected to stimulate rural demand, which is a crucial driver of two-wheeler sales. This convergence of economic and policy support presents a timely opportunity for manufacturers to ramp up production and cater to the surging demand.
The report’s data also reveals how the industry has steadily recovered over the last three years, maintaining healthy growth rates and showing strong domestic and export performance. A 21 per cent rebound in exports and a 9 per cent rise in domestic volumes in FY25 highlight the sector’s broad-based recovery. As the country looks ahead, the two-wheeler segment’s revival is not only a sign of consumer confidence but also a reflection of India’s broader economic recovery. If these trends continue, the industry is well-positioned to drive mobility and employment while playing a pivotal role in the rural-urban economic connect.