TL;DR
India's two-wheeler market recorded its highest-ever domestic wholesale volumes in FY26, reaching 22 million units, driven by strong rural demand, policy support, and a significant boost in electric two-wheeler sales.
The Indian two-wheeler industry has concluded Fiscal Year 2026 with an unprecedented performance, as domestic wholesale volumes soared to a record-breaking 22 million units. This impressive growth, reported by rating agency ICRA, was significantly bolstered by supportive government policies, a resurgence in rural demand, and a notable acceleration in sales during the latter half of the fiscal year.
Wholesale volumes experienced a 10.2% year-on-year increase in FY2026, while retail sales outpaced this with approximately 13% growth, indicating strong consumer appetite. The industry closed March on a high note, with wholesale volumes expanding by nearly 20% year-on-year and retail volumes surging by an impressive 28.7%.
Electric two-wheelers also contributed to this positive trend, gaining considerable traction throughout the year. Retail volumes for e2Ws increased by 47.4% year-on-year in March, with full-year volumes growing by 21.9%. Although overall e2W penetration for FY2026 remained modest at 3.3%, it jumped to 9.4% in March, signaling a growing shift towards green mobility.
