Indian two-wheeler industry eyes 7-9% growth in FY25

The volume growth of India’s two-wheeler industry is projected to slow down to 7-9 percent in the financial year (FY) 2025, compared to the 9.8 percent growth recorded in FY 2024, according to a recent report by CareEdge Ratings.

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This anticipated slowdown comes after a strong performance in FY 2024, where the industry saw significant growth despite facing various challenges.

The report highlights several factors expected to drive growth in FY 2025, with a particular emphasis on higher sales of electric vehicles (EVs). The Electric Mobility Promotion Scheme 2024 is expected to play a crucial role in supporting this growth, alongside the potential for interest rate cuts in the latter half of the fiscal year and robust demand for new model launches. These factors collectively point to a positive outlook for the industry, albeit at a slightly reduced growth rate compared to the previous year.

Historically, the Indian twowheeler industry reached its peak in FY 2019, with annual sales volumes hitting 24.46 million units. In contrast, FY 2024 saw total sales volumes of 21.43 million units. This decline from the peak highlights the industry’s challenges in recent years, including economic factors and changes in consumer preferences.