Research Report

Wholesale volumes grew by 29.2% in April 2026; retail volumes increased by 13.0% on a YoY basis. ICRA estimates 2W domestic volume growth to moderate to 3-5% YoY in FY2027, constrained by a high base and weak monsoon outlook, even as demand is expected to be supported by GST rationalisation-led improvement in vehicle affordability. Retail sales grew by 13.0% YoY in April 2026, supported by improved vehicle affordability, lower-than-expected price hikes, and sustained rural cash flows amid strong crop harvests.

Exhibit: Comparison of domestic 2W retail and wholesale trends