Two-Wheeler Sales in India to Grow by 7-9% in 2025, Says CareEdge Ratings

The two-wheeler industry in India is expected to grow by 7-9% in the Financial Year (FY) 2025, according to a recent report by CareEdge Ratings. This growth rate is slightly lower than the 9.8% growth recorded in FY24.

The report highlights that the growth in FY25 will be driven by higher Electric Vehicle (EV) sales, supported by the Electric Mobility Promotion Scheme 2024, the expectation of interest rate cuts in the second half of FY25, and strong demand for new model launches.

The Indian two-wheeler industry reached its peak sales volume in FY19 with 24.46 million units, while the total sales volume in FY24 stood at 21.43 million units.

The report also mentions that recovery in exports from the low base of FY24 and a favorable monsoon, which is likely to improve rural consumer sentiment and income levels, will play a vital role in the overall growth.

In FY24, the volume growth was driven by factors such as traction in EV volumes, a wider range of models, and new launches. The first half of FY24 saw a decline in demand due to increased vehicle prices, higher interest rates, and stressed rural incomes. However, sales revived in the second half due to festive season demand and improved rural sentiments.

During FY24, the domestic two-wheeler industry witnessed a total sales volume of 17.97 million units, reflecting a growth rate of 13%, while the export volume experienced a decline of 5% but recovered from FY23. The report attributes the decline in exports to stress in African markets, which traditionally accounted for a significant portion of India’s two-wheeler exports.