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CareEdge Ratings in its latest report has said that the two-wheeler industry is expected to sustain a steady volume growth this fiscal driven by improved domestic sales and good traction in executive and premium segment motorcycles. According to report, post-Covid, sales volume of two-wheelers had consistently declined during FY20, FY21 and FY22 before starting to recover from FY23, with sales momentum continuing in FY24 as well.

In FY23, the Indian two-wheeler industry recorded sales of 19.51 million units, an 8 per cent growth compared to the previous fiscal year's 18.01 million units. It stated in FY24, the industry continued its upward trajectory, achieving 9.8 per cent growth with a total sales volume of 21.43 million units. However, this was still short of the peak sales volume recorded in FY19, when annual sales volume had reached 24.46 million units.

Further, it said there are signs of revival, as in each of the last five months (January to May, 2024) two-wheeler exports reported robust double-digit volume growth, with two-wheeler exports in February reaching a 19-month high at 0.33 million units. Hardik Shah, Director at CareEdge Ratings, said ‘CareEdge Ratings anticipates two-wheeler sales volume growth to continue in FY25 and it would be more driven by improved domestic sales, higher EV sales, launch of CNG powered two-wheelers and good traction in executive and premium segment motorcycles.’