Two-Wheelers Sets New Record in FY26 with 2.17 Crore Units, Exports Hit New High

India's two-wheeler market has closed its most successful financial year (FY), outselling all previous benchmark the segment has ever set, including the pre-pandemic level of FY2018-19 that the industry long treated as its gold standard. The segment witnessed total sales for FY2025-26 at 2.17 crore units, reflecting annual growth of 10.7 per cent, industry body SIAM said on Tuesday. The number is significant and the January-March quarter alone accounted for 57.73 lakh units, the strongest fourth quarter the segment has ever recorded, and a 26.4 per cent improvement on the same period a year earlier.

Also read: Passenger Vehicle Sales Hit Record 46.43 Lakh Units in March: SIAM

The turnaround is largely credited to last year's GST rejig, as the rollout energised both the third and fourth quarters. Rate reductions by the Reserve Bank of India (RBI) and personal income tax relief measures introduced during the financial year gave household budgets more room to breathe, translating directly into showroom footfall and purchase decisions.

March also brought a measurable rise in electric two-wheeler purchases, with buyers moving ahead of anticipated fuel price increases, an early indicator that cost sensitivity is beginning to accelerate EV adoption in this segment.

“Each of the vehicle category, Passenger Vehicles, Commercial Vehicles, Three Wheelers and Two Wheelers posted their highest ever sales in the January to March Quarter with double digit growth compared to previous year’s quarter. In Q4 of 2025-26, Passenger Vehicles posted sales of 13.16 lakh units with a growth of 13.2%, Commercial Vehicles posted sales of 3.25 Lakh units with a growth of 18.9%, Three-Wheelers posted sales of 2.27 Lakh units with a growth of 26.7% and Two-Wheelers posted sales of 57.73 Lakh units with a growth of 26.4%, compared to Q4 of 2024-25," Rajesh Menon, Director General, SIAM told reporters in New Delhi. 

Demand strengthened across geographies, though urban consumers drove the bulk of the demand. Rural markets participated in the recovery but at a more measured pace, leaving room for further upside if agricultural conditions remain favourable in the year ahead.

On the international front, the two-wheeler industry shipped 51.8 lakh units overseas during FY2025-26 which is the highest export volume ever recorded in a single financial year, and 23.4 per cent ahead of the previous year. 

Indian two-wheeler brands are gaining traction in global markets on the back of an expanding model lineup and a strengthening quality reputation. A weaker rupee has added a pricing advantage that is visibly moving the needle on volumes abroad.