‘Domestic 2W sales may grow at 6-9% in FY26’

NEW DELHI: Two-wheeler sales in India are estimated to grow by 6-9 per cent in FY26 as compared to the previous fiscal, riding on the recent GST rate reduction, which is anticipated to support affordability and stimulate demand, besides steady replacement demand, urban recovery and healthy rural incomes driven by a normal monsoon, ratings agency ICRA said on Tuesday.

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Domestic wholesale volumes grew by 7.2 per cent on a YoY basis in August 2025 to 18 lakh units, as OEMs maintained healthy dispatches ahead of the festive season, ICRA said ina statement.

Retail sales, however, grew by a marginal 2.2 per cent YoY, with growth constrained by excess rains and some purchase deferment linked to the GST rate cut; a pickup is expected during the upcoming festive season, it added.

ICRA further said it estimates two-wheeler domestic volumes to grow by 6-9 per cent YoY in FY2026.