Did Wholesale Volumes of 2-Wheelers in India Surge 19% to 1.8 Million in November?
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Synopsis
In November, wholesale volumes of two-wheelers in India surged by 19% year-over-year, totaling 1.8 million units. This growth was fueled by GST cuts and dealer incentives. While retail sales dipped 3.1%, demand remains strong, particularly for electric models. The outlook for FY26 anticipates continued growth driven by improving market conditions.
Key Takeaways
- Wholesale two-wheeler volumes increased by 19% in November.
- Retail sales dipped by 3.1% year-on-year.
- Electric two-wheeler volumes experienced a slight decline.
- Exports grew by 27.9% during the same period.
- Inventory levels improved significantly.
New Delhi, Dec 19 (NationPress) The wholesale figures for domestic two-wheelers experienced a notable increase of 19 percent (year-over-year) in November, totaling 1.8 million units, according to a report released on Friday.
The analysis from ICRA credited this growth to reductions in Goods and Services Tax (GST) and enticing offers from original equipment manufacturers and dealers, which helped maintain customer visits to showrooms following the festive season. This, in turn, encouraged dealers to boost their stock levels and facilitate wholesale deliveries.
The ratings agency projected a growth of 6–9 percent in two-wheeler volumes for FY26, driven by a resurgence in replacement demand due to GST rate cuts, a forecasted rebound in urban spending, and solid rural income levels supported by a favorable monsoon.
However, retail sales saw a decline of 3.1 percent year-over-year in November, primarily because the festive rush advanced demand into October, which recorded exceptional sales.
Dealers are still observing consistent customer traffic, bolstered by favorable GST sentiments and robust demand associated with the ongoing wedding season.
Meanwhile, retail sales of electric two-wheelers experienced a slight decline of 1.4 percent year-over-year, totaling 117,335 units in November. The monthly penetration of electric models within the overall two-wheeler segment remained steady at 6–7 percent throughout the initial eight months of FY26, indicating a gradual acceptance of these vehicles.
Export figures continued on an upward trajectory, rising by 27.9 percent year-on-year, and overall industry volumes increased by 23.6 percent during the April-November timeframe, aided by a comparatively low base from the corresponding period in FY25.
Inventory levels improved to 44–46 days by November 2025, down from 60 days at the end of September, as reported by the Federation of Automobile Dealers Association (FADA), thanks to stronger retail sales.
Utility vehicles accounted for 67 percent of passenger vehicle sales in November, a drop from 69 percent in October, while the mini, compact, and super-compact segments saw a revival following GST reductions. Ongoing supportive policy initiatives and enhanced market sentiment are anticipated to propel this growth trajectory into 2026.
Point of View
I observe the substantial growth in the two-wheeler sector as a positive sign for the economy, reflecting increased consumer spending and resilience in the automotive market. This growth trajectory not only highlights the impact of policy reforms on consumer behavior but also reveals the market's adaptability amidst changing demands.
NationPress
21/12/2025
Frequently Asked Questions
What caused the increase in two-wheeler sales?
The increase in two-wheeler sales was primarily due to GST cuts and dealer offers that encouraged showroom visits.
How much did electric two-wheeler sales decline?
Electric two-wheeler retail volumes saw a slight decline of 1.4% year-on-year, totaling 117,335 units in November.
What is the forecast for two-wheeler growth in FY26?
The forecast for two-wheeler volume growth in FY26 is projected to be between 6-9%, driven by improved market conditions.
How did export volumes perform?
Export volumes continued to grow, increasing by 27.9% year-on-year during the reported period.
What are the current inventory levels?
As of November 2025, inventory levels improved to 44-46 days, down from 60 days at the end of September.
