New Delhi [India], January 29 (ANI): The two-wheeler (2W) industry has seen a slowdown in growth over recent months, however, analysts expect the sector to expand at a high-single-digit rate in FY26, according to HSBC Global research report.
The past decade’s compounded annual growth rate (CAGR) of the two-wheeler segment remains below 3 per cent, making it one of the slowest-growing segments in the automobile industry.
Electrification in the 2W segment has been progressing slowly, despite substantial government incentives. HSBC noted that urban demand for economy motorcycles has been impacted the most due to the rising popularity of electric scooters.
These e-scooters are becoming more favourable in urban areas, where better roads, improved charging infrastructure, and cost-effective commuting options support adoption.
“We believe that electrification has impacted the urban demand of the economy motorcycle segment the most. E-Scooters present a better proposition in urban markets due to better roads, charging infrastructure, and cost-efficient commuting.” said the report.
On a positive note, rural demand is witnessing a recovery, backed by favourable water reservoir levels. The export market is also showing signs of improvement, contributing to a more optimistic outlook for the industry.
Management projections indicate an overall industry growth of 6-8 per cent in FY26, with the 125cc motorcycle segment expected to outpace the broader market.
Additionally, between December and March, various companies are gearing up to launch over nine new variants, in both electric and internal combustion engine (ICE) models, offering consumers multiple price points.
Scooter sales (both ICE and EV) have reached a new high of 36 per cent in FY25, after declining to 31 per cent in FY21 from 35 per cent in FY18. This surge is primarily driven by the rise of electric scooters, which have taken market share from the economy motorcycle segment (75-110cc).
Overall, while the industry faces challenges, the combination of recovery in rural demand, improving exports, and a growing scooter market–especially in the EV segment–presents a mixed but promising outlook for FY26. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
