The two-wheeler industry in India is expected to sustain a steady volume growth rate of around seven to nine percent in FY2024-25 as far as the domestic market as well as the export markets are concerned. 

The growth in FY2024-25 is expected to be driven by higher electric vehicle (EV) penetration in the market, according to a report released by CareEdge Ratings. A big catalyst in higher EV penetration in the market is going to be the Electric Mobility Promotion Scheme 2024 (though only till July 2024 and likely to get an extension), expectation of interest rate cuts in second half of FY2024-25, strong demand for new model launches, recovery in exports from its low base of FY2023-24 and favourable monsoon which would improve rural consumer sentiment and income levels. 

Pointing out at a combination of factors behind the growth of two-wheelers in such as traction in EV volumes, wider range of models and new launches, the report highlights a robust double-digit growth pace in each of the two quarters that ended on March 2024 on a year-on-year basis in FY2023-24, the report states the restriction in the automotive segment growth in the first half of FY2023-24 was on account of the increase in vehicle prices post the implementation of the phase-II of the BS VI emission norms, higher interest rates and stressed rural incomes. Sales revived in the second half of the respective fiscal on the back of festive season demand and uptick in rural sentiments.

“Post-covid, sales volume of two-wheelers had consistently declined during FY20, FY21 and FY22 before starting to recover from FY23, with sales momentum continuing in FY24 as well. CareEdge Ratings anticipates two-wheeler sales volume growth to continue in FY25 and it would be more driven by improved domestic sales, higher EV sales, launch of CNG powered two-wheelers and good traction in executive and premium segment motorcycles.” said Hardik Shah, Director, CareEdge Ratings.

In FY2022-23, the Indian two-wheeler industry recorded sales of 19.51 million units, an eight percent growth compared to the previous fiscal year’s 18.01 million units. In FY2023-24, the industry continued its upward trajectory, achieving 9.8 percent growth with a total sales volume of 21.43 million units. However, this was still short of the peak sales volume recorded in FY19 when annual sales volume had reached 24.46 million units, as per the report.

In FY2023-24, the domestic two-wheeler industry witnessed total sales volume of 17.97 million units, reflecting a growth rate of 13 percent. Exports volume experienced a decline of five percent even though it recovered from the low of FY2022-23. The decline in exports was attributed to challenges in the African markets, which traditionally accounted for a significant portion of India’s two-wheeler exports. 

EVs propel two-wheeler growth 

The overall volume growth in FY2022-23 and FY2023-24 was supported by the increasing demand for electric two-wheelers, according to the CareEdge Ratings report. In FY2022-23, electric two-wheeler sales reached approximately 0.73 million units, accounting for 4.54 percent of total two-wheeler sales (compared to 1.87 percent in the previous year), reflecting a remarkable year-on-year growth of 188 percent albeit on a low base. 

Continuing the positive trend, electric two-wheeler sales grew by around 30 percent in FY2023-24 surpassing volume of 0.94 million units. The demand for electric two-wheelers is driven by a shift in consumer preferences towards options that offer lower fuel costs, reduced maintenance, and lower servicing requirements compared to internal combustion engine (ICE) models. The government’s FAME II programme – till FY2023-24 – has made EV ownership more affordable, thereby contributing to volume growth.

The Indian Government’s newly introduced Electric Mobility Promotion Scheme 2024 (EMPS 2024) has continued to bolster electric two-wheeler sales in FY2024-25 – that is until July 2024. Despite the higher initial cost of electric two-wheelers, consumers are increasingly making the switch to EVs, the report pin points.

Segment wise, motorcycles have consistently dominated the market, contributing to majority of the two-wheeler sales. Sales volumes of motorcycles grew by eight percent in FY2023-24 and that of scooters grew by 13 percent during the respective period. This segment-wise growth trend is expected to continue in FY2024-25. 

With motorcycles continuing to be popular due to their superior fuel efficiency, cost-effectiveness, and versatility, scooters have also gained traction among urban commuters. 

Image for representative purpose only.

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Chennai-headquartered two-wheeler and three-wheeler major TVS Motor Company has announced its financial results for Q1 FY2026, with a significant 20 percent increase in revenue for the first quarter.

The company's revenue climbed to INR 100.81 billion, up from INR 83.76 billion in the same period last year.

The company's profitability also saw a major boost. Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 32 percent to INR 12.63 billion, with the operating margin improving to 12.5 percent from 11.5 percent. This led to a 35 percent increase in Profit After Tax (PAT) to INR 7.79 billion.

During the period, TVS Motor registered its highest ever quarterly sales, with overall two- and three-wheeler sales growing by 17 percent to 1.27 million units. This includes motorcycles sales at 621,000 units, up 21 percent, scooters at 499,000 units, up 19 percent, three-wheelers sales at 45,000 units, up 46 percent and electric scooters at 70,000 units, up 35 percent YoY respectively.

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Bengaluru-based electric two-wheeler manufacturer Ather Energy has launched a new variant of its 450S electric scooter, featuring an upgraded 3.7 kWh battery pack that delivers an IDC range of 161km. Priced at INR 145,999 (ex-showroom, Bengaluru), the new model offers an extended range while maintaining the performance DNA of the 450 series.

The variant is positioned to bridge the gap between the entry-level 450S 2.9 kWh and the higher-end 450X. It features the same 5.4 kW motor producing 22 Nm of torque, a claimed top speed of 90 kmph, and zero to 40 kmph acceleration in 3.9 seconds.

Ravneet Phokela, Chief Business Officer, Ather Energy, said, "The 450 series has always set the bar for performance, technology, and reliability in the Indian electric scooter market. With the launch of the 450S featuring a 3.7 kWh battery pack and an IDC range of 161km, we're bringing the extended range previously exclusive to the 450X. The new 450S variant is specifically designed for riders who prioritise the sporty appeal and long-range capability of the 450 series over the advanced software features of the 450X. With an IDC range of 161 kms offered by the new 450S, riders can now confidently plan longer journeys and still experience the thrilling performance the 450 series is renowned for, all at a more accessible price."

The new 450S retains the sharp styling and build quality of the 450 range, while offering four riding modes – Smart Eco, Eco, Ride and Sport. It also comes equipped with a 7-inch DeepView Display, Bluetooth connectivity, turn-by-turn navigation, AutoHold, Fall Safe, OTA updates and access to the Ather Grid fast-charging network.

Bookings are now open, with deliveries set to begin from August 2025. Ex-showroom prices for the new variant are INR 148,047 in Delhi, INR 148,258 in Mumbai, INR 145,999 in Bengaluru and INR 147,312 in Chennai.

The scooter is covered under Ather’s 'Eight70' warranty programme, which offers 8 years or 80,000 km of coverage, guaranteeing 70 percent battery health during the period.

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Eicher Motors (EML) has reported its highest-ever Q1 revenue in FY2026, reaching INR 50.42 billion, up 14.8 percent YoY, from INR 43.93 billion last year.

The EBITDA grew by 3.2 percent to INR 12.03 billion, while Profit After Tax (PAT) stood at INR 12.05 billion, up 9.4 percent from INR 11.01 billion in Q1 FY2024-25.

During the quarter, Royal Enfield sold 261,326 motorcycles, which was 14.7 percent higher as compared to 227,736 units sold in the corresponding period last year.

VE Commercial Vehicles (VECV) posted INR 56.71 billion in revenue, up 11.9 percent from INR 50.70 billion, while EBITDA grew by 32.6 percent to INR 5.11 billion. The company sold 21,610 CVs in Q1, compared to 19,702 in the previous year. VECV’s revenue and EBITDA are not included in Eicher Motors’ consolidated financials, and its profit contribution is reflected as a single line in EML’s consolidated PAT.

B Govindarajan, MD, Eicher Motors, and CEO, Royal Enfiled, said, “At Eicher Motors, we’ve had a solid start to the year, with encouraging growth across both Royal Enfield and VECV. We continue to build consistent momentum in volumes, profitability and the strength of our overall portfolio. At Royal Enfield, we have sustained our growth momentum in the first quarter, anchored by our continued focus on product innovation, immersive riding experiences and a deeper expression of pure motorcycling. The refreshed Hunter 350 continues to be a key marker of growth for us, both in terms of volumes and community engagement. Moving ahead on our global ambition, we further strengthened our reach in the SAARC region and expanded our portfolio in Nepal with the locally assembled Classic 350. With a refreshed pipeline of motorcycles and a growing ecosystem of curated rides and culture-first experiences, we are shaping a vibrant and inclusive motorcycling movement. VECV, too, has delivered consistent growth, anchored in a strong product portfolio and a sharp understanding of India’s evolving commercial mobility needs. Our continued investment in sustainable, efficient transport solutions ensures we are well-positioned for the future. As we move forward, our commitment to long-term value creation remains strong – through customer-centric innovation, global ambition, and meaningful brand experiences at every level.”

Vinod Aggarwal, MD and CEO, VECV, and Vice Chairman, Eicher Motors, said, “CV delivered its best‑ever first quarter with 21,610 units in Q1 FY’26 (up 9.7 percent year‑on‑year) and broadened its footprint in a largely flat market. Overall market share improved to 18.7 percent (vs 17.3 percent last year), led by continued leadership in LMD trucks (34.5 percent share) and a strong showing in Buses, where Total Bus volumes grew 14.8 percent and market share rose to 21.5 percent. Exports grew by 20.5 percent over last year. Deliveries of all electric Eicher Pro X in SCV segment (2.0–3.5T) continue to gather momentum. Heavy‑Duty volumes were marginally lower reflecting a lower total market despite market share gains. Our connected vehicle solution “My Eicher” now connects 150,000 customers representing 350,000 vehicles. VECV reported strong revenue growth and expansion in profit margins linked to better volumes, pricing and cost discipline. PAT was lower as compared to previous year primarily due to one off impact in Q1 FY’25 linked to deferred tax reversal.”

VECV also reported improved market share in LMD trucks and buses, and growth in electric vehicle deliveries and exports.

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Chennai-based two-wheeler and three-wheeler major TVS Motor Company has launched the TVS Ntorq 125 Super Soldier Edition in the Marvel Avengers Super Squad series at INR 98,117 (ex-showroom Delhi).

The TVS Ntorq Super Soldier Edition builds on the company’s successful collaboration with Marvel, and features a striking camo-inspired theme.

The Bluetooth-connected Smart scooter (SmartXonnect) remains mechanically unchanged, featuring a 124.8cc, air-cooled engine that produces 9.5hp and 1.5Nm of power.

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