Two-Wheeler Sales Hit Record High in October Driven by Festive Demand and GST Cut: ICRA

India's two-wheeler retail sales reached a record high in October 2025, data from rating agency ICRA said on Tuesday, with volumes growing 51.8 per cent to 3.15 million units compared to 2.08 million units in the corresponding month last year. The surge is a sharp rebound following muted demand in September, which was affected by the GST 2.0. The credit rating agency attributed the growth to multiple factors including GST rate reductions, festive season demand during Dussehra and Diwali, and strong rural market performance.

Rural markets outperformed urban areas during the month, supported by healthy farm incomes, the agency added.

Electric Two-Wheelers Shows Steady Progress

Electric two-wheeler retail volumes reached 144,365 units in October 2025, representing a 4 per cent increase over 139,337 units in the year-ago period. Monthly electric two-wheeler penetration within the overall segment remained stable at 6–7 per cent, indicating gradual adoption patterns.

Wholesale Dispatches See Moderate Growth

On the wholesale front, domestic dispatches totalled 2.1 million units in October 2025, growing 1.5 per cent against 2.07 million units in October 2024. The modest growth reflects a high base effect, though original equipment manufacturers sustained healthy dispatches supported by robust festive season demand.

Export volumes grew 17.8 per cent to 430,035 units in October 2025 compared to 365,166 units in the same month last year. For the seven-month period of FY2026 from April to October, industry export volumes recorded 23.0 per cent growth, reaching 2.86 million units against the corresponding period of FY2025, supported by a relatively low base.

Full-Year Projection

ICRA estimates two-wheeler domestic volumes will register year-on-year growth of 6–9 per cent in FY2026 against 19.9 million units in FY2025, with volumes remaining flat in the first seven months of the current fiscal year.

The rating agency said the recent GST rate cuts are likely to support demand, aided by improved replacement demand, expected recovery in urban demand, and healthy rural incomes driven by a normal monsoon.