“On the whole, I firmly believe that you can look at a CAGR of 8 to 9 per cent over the long term…,” Radhakrishnan said when asked about the two-wheeler industry’s growth prospects for the next fiscal on the back of strong performance in the third quarter.
The benefits of the GST rate cut, which was implemented on September 22 last year, will be visible in the fourth quarter, he added.“The first half of next year (fiscal) will also be very good as the benefits will accrue to the sector,” he noted.
While not sharing an exact forecast for the next fiscal, Radhakrishnan said, “I think you will see robust growth in two-wheeler even in FY27.”
Sharing the reasons for the optimistic outlook, he said that as road connectivity in rural, urban and semi-urban areas continues to improve while the public transport system remains a challenge, personal mobility, especially two-wheelers, will gain. Moreover, he said, “The share of ‘self-employed’ is high in India. Considering that two-wheelers are the best segment as customers can afford it, customers can definitely use it for mobility, as can 50 percent of the income group.”
Overall, GDP is likely to grow, Radhakrishnan said.
In the current fiscal year, he said, the benefit of GST rate reduction is not just in two-wheelers but in all sectors where consumers have benefited.
He expressed confidence that the growth of the two-wheeler industry in the fourth quarter could be “just over 15 percent”, which is “one of the best growth rates we have ever seen”.
For FY26 as a whole, he said, “…the first half wasn’t that great. It was only 2 percent growth. So over the full year, you’ll see about 9 percent growth…”
(With inputs from PTI)
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