ICRA forecasts 6-9% growth in 2-wheeler sales in FY26
ICRA expects India's two-wheeler sales to grow by 6-9% in FY26, thanks to lower GST rates making bikes and scooters more affordable.
Strong rural incomes after a good monsoon, steady demand for upgrades, and urban market recovery are also fueling this growth.
Two-wheelers: What happened in August 2025
In August 2025, manufacturers shipped out 1.8 million two-wheelers—a 7.2% jump from last year—as they geared up for the festive rush.
But actual retail sales only rose by 2.2%, slowed down by heavy rains and buyers waiting for GST cuts to kick in.
Electric two-wheelers held steady with about 105,000 units sold and a consistent market share of around 6-7%.
Tractors: What about the rest of FY26?
Tractor shipments soared by over 28% year-on-year in August 2025.
ICRA forecasts tractor sales will climb another 4-7% this year, helped by above-average rainfall (108% of normal so far), cheaper GST rates (now just 5%), solid rural demand, and farmers buying ahead of new emission rules.