Indian Two-Wheeler and Passenger Vehicle Sales Forecast Moderate Growth in FY27
The Indian two-wheeler industry is projected to grow moderately by 3-5% in FY27, supported by domestic demand, GST rationalisation, and replacement demand, despite challenges like a high base effect, potential weak monsoon due to El Niño, inflation-driven price increases, and geopolitical tensions. Meanwhile, passenger vehicle sales are expected to rise 4-6%, driven by strong demand, improved affordability post-GST cuts, and utility vehicle popularity. Both segments show increasing electric vehicle adoption, with EV penetration reaching 8.9% in two-wheelers and nearly 6% in passenger vehicles.