Indian two-wheeler industry set for significant growth by FY26
The Indian two-wheeler industry is projected to experience substantial growth between FY24 and FY26, according to a study by Nuvama Wealth and Investment Limited. The research forecasts an 8% year-on-year (YoY) increase in revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q2 of FY25. This prediction contrasts with the single-digit growth anticipated for the passenger vehicle sector during the same period.
Major automakers predicted to witness significant growth
The study identifies several major automakers, including Mahindra & Mahindra, TVS Motor Company, Bajaj Auto, Hero MotoCorp, and Royal Enfield as potential beneficiaries of this projected growth. Domestic two-wheeler sales volumes are expected to rise by approximately 15% YoY in Q2 of this fiscal year. This surge is attributed to factors such as rising rural demand, sustained urban consumer interest, and accessible financing options.
Individual growth projections for leading two-wheeler manufacturers
The study provides individual growth projections for the leading two-wheeler manufacturers. Bajaj Auto is tipped to experience a 25% YoY growth in Q2 of this fiscal year. TVS, Hero MotoCorp, and Royal Enfield are also expected to see significant increases with projected growth rates of 16%, 7%, and 9% respectively.
Passenger vehicle industry faces contrasting growth prospects
In contrast to the two-wheeler sector, the domestic passenger vehicle industry is predicted to experience a slight downturn. Sales volumes are projected to decrease by about 1% YoY. Tata Motors and Maruti Suzuki, two major car manufacturers, are expected to see a 3% and 1% revenue decline respectively. However, Mahindra is forecasted to buck this trend with a projected revenue growth of 12%, driven by its diverse range of SUVs and rising demand for utility vehicles in India.
