NEW DELHI, Delhi — Wholesale volumes of domestic two-wheelers rose 19 percent year over year in November to 1.8 million units, supported by Goods and Services Tax (GST) cuts and incentive offers from manufacturers and dealers, according to a report released on Friday.
The report by ratings firm ICRA said GST reductions and original equipment manufacturer–dealer schemes helped sustain showroom footfalls after the festive season, prompting dealers to replenish inventories and boosting wholesale dispatches.
ICRA projected two-wheeler volume growth of 6–9 percent in FY26, driven by stronger replacement demand following GST rate cuts, an expected recovery in urban consumption, and healthy rural incomes supported by a normal monsoon.
Retail sales, however, declined 3.1 percent year over year in November, largely due to the early timing of the festive season, which shifted a significant portion of demand to October, when sales reached record levels.
Despite the moderation in retail volumes, dealers reported steady customer footfall, aided by positive sentiment following GST changes and strong demand from the ongoing wedding season, the report said.
Electric two-wheeler retail volumes dipped marginally by 1.4 percent year over year to 117,335 units in November. Monthly electric two-wheeler penetration in the overall two-wheeler market remained stable at 6–7 percent during the first eight months of FY26, indicating gradual adoption.
Export volumes continued to post double-digit growth, rising 27.9 percent year over year, while overall industry volumes increased 23.6 percent during the April–November period, supported by a low base in the corresponding period of FY25.
Inventory levels improved to 44–46 days by November 2025 from about 60 days at the end of September, according to data from the Federation of Automobile Dealers Association, helped by stronger retail offtake, another recent report said.
In the broader automobile market, utility vehicles accounted for 67 percent of passenger vehicle volumes in November, down from 69 percent in October, while mini, compact and super-compact segments showed a revival following GST cuts. Continued policy support and improving market sentiment are expected to sustain growth momentum into 2026, the report noted. (Source: IANS)
