- Market grew 13.01 percent year-on-year
- Fuel-price risk from West Asia remains a watch-out
India’s two-wheeler industry opens FY2026-27 on a healthy note reaching 19,16,258 units in April 2026, up 13.01 percent year-on-year. This makes it the best-ever April for the segment. Urban markets grew 14.07 percent and rural markets rose by 12.30 percent.
As the lowering of GST clearly suggests one of the prime reason behind this growth may be affordability. Government said GST on two-wheelers up to and including 350cc was reduced from 28 percent to 18 percent to improve accessibility for lower-middle-class households, young professionals and gig workers across rural and semi-urban India. This lowering the slab improved sticker-price affordability on a large share of commuter motorcycles and scooters. It also improved EMI effort for our price-sensitive market. FADA directly linked April’s performance to “continued affordability gains carried over from the GST 2.0 framework”.
FADA also points towards improved rural liquidity after a healthy rabi season. So if farm income and rural cash flow improve at the same time as taxation becomes lighter, demand tends to respond quickly. That appears to be exactly what happened in April. The extended marriage season also helped.
There were also selective supply constraints in certain commuter and premium variants, which means the market might have done even better with smoother availability. Hero MotoCorp sold 5,52,145 units in April 2026, Honda Motorcycle and Scooter India retailed 4,72,289 units and TVS Motor Company made 3,68,853 unit sales. Bajaj Auto retailed 2,01,777 units and Royal Enfield sales stood at 96,798 units.
FADA now further expects support from the sustained rural sentiment, healthy agri cash flows ahead of the Kharif sowing window, and continued GST reduction affordability. It would mean the market should stay firm through the next few months, even if growth normalises from April’s high base.
The main external risk is fuel-price uncertainty linked to the conflict in West Asia. Reuters has reported that the U.S.-Israel conflict with Iran has disrupted oil flows and pushed up energy stress in Asia, even though there have also been short periods of easing as ceasefire hopes surfaced. For India’s two-wheeler market this higher crude can eventually affect pump prices, logistics costs and buyer sentiment. If fuel prices move up sharply, that could hurt entry-level demand or delay purchases in the most price-sensitive pockets.
