- The Indian two-wheeler industry is projected to grow by 5-8% in FY27, supported by stable macro conditions and continued urbanization.
- In FY24, two-wheeler volumes were at 18 million units, which grew to 22.3 million units by FY26.
- In Q1FY27, domestic scooter sales rose 30.8% year-on-year to 2.179 million units, while motorcycle sales grew 14% to 3.309 million units.
- Overall domestic two-wheeler sales increased 20.3% to 5.63 million units in Q1FY27, with exports reaching a record 1.55 million units.
- Electric scooter sales in Q1FY27 nearly doubled to 393,000 units, contributing significantly to the growth in the scooter segment.
- The industry projection for FY27 indicates that EV penetration could rise to 7-9% as scooters continue to gain market share.
The Indian two-wheeler industry is set for a growth of 5-8% in FY27, driven by a shift in consumer preference towards scooters and electric vehicles (EVs).1
According to a report by Jato Dynamics, scooters are expected to gain further market share as urban demand remains robust. The report highlights that domestic scooter sales surged by 30.8% year-on-year in Q1FY27, rising from 1.665 million to 2.179 million units. In contrast, motorcycle sales grew at a modest 14%, from 2.903 million to 3.309 million units.34
The goods and services tax (GST) rate cut has been a significant factor in this divergence, with Siam noting that the scooter segment has maintained momentum due to reduced GST.
The electric two-wheeler market is also on the rise, with penetration projected to reach 7-9%. However, the pace of this growth will depend on factors such as subsidy continuity and infrastructure expansion.910
Kumar Rakesh, associate director at BNP Paribas, noted that EVs significantly contributed to the growth in scooter sales, stating, “Excluding EVs, the rest of the scooter segment grew 22% Y-o-Y.”
Overall, domestic two-wheeler sales reached 5.63 million units in Q1FY27, marking a 20.3% increase year-on-year, while exports hit a record 1.55 million units, up 36.6%.56
“Scooter sales jumped 30.8% year-on-year in Q1FY27 to 2.179 million units, while electric scooter volumes nearly doubled to 393,000 units. Excluding EVs, scooter growth still hit 22%, but the GST-driven momentum may fade as the base effect wears off.”
