Two-wheeler retail sales remained healthy in August, with India’s 2-wheeler retail growth reaching 18–20 per cent year-on-year, supported by the Onam festival and a low base, a report said on Thursday.
India’s 2-wheeler retail growth gets festive boost
The report from Yes Securities said organic inquiries rose 10-12 per cent, with healthy traction across urban and rural markets. Premium ICE and EVs remain the key growth drivers, with OEMs ramping up supplies ahead of the festive season, the report said.
Passenger vehicle retail was also healthy, with 11–13 per cent year‑on‑year growth and a 20 per cent boost from the Onam festival, while urban markets outperformed rural ones. Inventories remained lean at roughly four weeks despite healthy dispatches, although waiting periods remained elevated for key alternate‑fuel models.
EV demand remains strong across urban and tier-2 markets
Medium and heavy commercial vehicle demand stayed firm, with an impending November 2026 ban on BS4 vehicles entering Delhi‑NCR expected to provide replacement tailwinds.
Dealer inventories remain optimal at 20-22 days, the report noted, adding that tractor sales remained at a healthy double digit.
The firm said that channel partners, especially from urban/tier 1/tier 2 cities, indicated very strong pull for the EV volumes, continuing even in August.
“Model mix remains healthy as top-end variants are seeing stronger acceptance as consumers increasingly value technology, performance and features beyond just cost savings,” the report noted.
CNG and EV bookings surge as demand shifts
The report indicated a spurt in the CNG and EV demand with over 30 per cent increase in inquiries and bookings led by new product launches and negativity around E20.
The wait period for high demand brands remains high with EVs at 3-4 months and ICE at 1-1.5 months.
Auto companies raise prices amid input cost pressure
Major OEMs have implemented price hikes to pass on input cost inflation with another price hike of 0.5-1.5 per cent. Discounts across ICE and EVs have remained flat MoM with full retention of incremental price hikes across brands.
The nature of discounts remains selective and inventory-led, rather than a broad-based demand push, the report noted.
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