Domestic Two-Wheeler Wholesale Volumes Surge 19% in November

Domestic two-wheeler wholesale dispatches in India surged 19% year-on-year in November 2025, reaching approximately 1.8 million units, according to a report by ratings agency ICRA released on December 19. The growth was fuelled by recent Goods and Services Tax (GST) rate reductions implemented in September 2025, which lowered prices for most commuter motorcycles and scooters, combined with attractive dealer offers from original equipment manufacturers that maintained customer footfalls in showrooms beyond the peak festive period.

These incentives prompted dealers to rebuild depleted inventories after record retail demand in October, when an early festive season—driven by the same GST benefits—shifted significant buying forward. Dealer stock levels improved to 44-46 days by the end of November, down from an elevated 60 days in September, as per Federation of Automobile Dealers Associations (FADA) data, reflecting balanced replenishment amid sustained post-festive momentum.

In contrast, retail sales registered a modest 3.1% year-on-year decline to about 2.55 million units, largely attributable to the front-loaded festive purchases in October rather than weakening underlying demand. Electric two-wheeler penetration remained steady at 6-7% of the segment, while exports grew robustly by 27.9% year-on-year.

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ICRA forecasts overall two-wheeler industry growth of 6-9% for fiscal year 2026, supported by enhanced replacement demand from GST cuts, recovering urban consumption, and strong rural incomes bolstered by a favourable monsoon. Cumulative volumes for April-November 2025 rose 23.6%, aided by a low base from the prior year, signalling a gradual recovery in India's dominant two-wheeler market, which accounts for over 80% of the country's vehicle sales.

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