Domestic 2-wheeler sales growth estimated at 6-9% in FY26: ICRA

The sale of two-wheelers in India will grow an estimated 6-9 percent in FY26 compared to the previous tax, driving on the recent GST speed reduction, which is expected to support affordability and stimulates demand, in addition to stage, urban recovery and the country of ICRA. Tuesday.

Domestic wholesale volumes grew by 7.2 percent on a YOY basis in August 2025 to 18 LAKH units, because OEM’s healthy shipments for the festive season, Icra said in a statement.

The sale of the retail trade, however, grew with a marginal 2.2 percent yoj, with growth limited by surplus rains and some purchasing postponement linked to the GST speed reduction; A pick-up is expected during the coming festive season, it added.

Icra further said that the two-wheeler domestic volumes is darling to grow in FY2026 with 6-9 percent yoj.

“This projection is supported by a steady replacement question, an expected recovery of urban demand, healthy national incomes driven by a normal monsoon and the recent GST speed limit, which is expected to support affordability and stimulate the question,” noted it.

In the electric two-wheeler segment, the ratings agency said that retail volumes were 1.04.725 units in August 2025, with a modest sequential growth of 1.8 percent, leaving penetration in the reach of 6-7 percent. On the tractors segment, ICRA said that the recent GST -speed reduction on tractors up to 5 percent is expected to support the question, especially during the coming party season. The segment has demonstrated robust performance, with wholesale volumes that reported a significant growth of 28.2 percent yoJ in August 2025, built on a cumulative growth of 11.7 percent yoJ for the first five months of FY2026, it added.

“Tractor volumes is growing at a moderate pace of 4-7 percent in FY2026. This growth is strongly supported by above normal monsoons, which is expected to support agricultural production,” Icra said.

It further said: “The early start of the monsoon led the country to receive a rainfall with 108 percent of the average long period until 17 September 2025.

Consequently, the demand from the tractor remained strong in August, with shop volumes with 30.1 percent yoj, powered by positive peasant sentiments and adequate rainfall. ”

The industry also anticipates potential pre-Puying prior to the Trem V-emissions that are proposed to come into effect from 1 April 2026, it added.