New Delhi, May 11 – The domestic two-wheeler industry is poised to maintain its growth momentum in FY25, supported by favorable economic measures, increased infrastructure spending, and prospects of a normal monsoon, according to TVS Motor Company CEO KN Radhakrishnan.
Two-Wheeler Registrations Rise 8% in FY25
India's two-wheeler market registered an 8 percent year-on-year increase, with total registrations reaching 1.88 crore units in FY25, up from 1.75 crore units in FY24.Radhakrishnan expressed confidence in continued domestic growth, stating during an analyst call, "Overall growth momentum in the domestic market, we are expecting, is likely to be like last year."
While he noted that Q1 of FY26 could be moderate, sales in May and June are expected to be strong, boosted by the wedding season that typically drives consumer purchases.
Economic Drivers Fueling Demand
Radhakrishnan outlined multiple macroeconomic and policy-driven factors that are expected to support two-wheeler sales in the current fiscal year:- Lower EMIs: A 50 basis point reduction in the benchmark repo rate over the last three months has made loans more affordable.
- Higher Income Tax Relief: The income tax rebate limit has been increased from Rs 7 lakh to Rs 12 lakhunder the new tax regime, enhancing disposable income.
- Infrastructure Push: Continued government investment in infrastructure is expected to boost long-term economic vitality and raise living standards.
- Normal Monsoon Forecast: A regular monsoon is expected to uplift rural sentiment and improve agricultural output, which typically boosts rural two-wheeler demand.
Replacement Cycle and GDP Outlook
The company anticipates a revival in the vehicle replacement cycle this year, another key factor contributing to sales. Radhakrishnan also projected GDP growth of 6.5% in FY26, primarily driven by rising consumption and recovery in agriculture.TVS Motor Reports 13% Growth in FY25 Sales
TVS Motor Company itself saw robust growth, with two- and three-wheeler sales rising by 13% to 47.44 lakh units in FY25, up from 41.91 lakh units in FY24.The company remains optimistic that a combination of fiscal incentives, rural recovery, and infrastructure development will continue to support strong demand across urban and rural markets.
